〈 Mount Tremblant, Canada 〉

Canadian Solar Infrastructure Fund, Inc.
1-25-1 Nishi-Shinjuku, Shinjuku-ku,
Tokyo 163-0633 Japan
https://www.canadiansolarinfra.com/

Asset Management Reportfor the 6th FP
From January 1, 2020 to June 30, 2020

To Our Investors
On behalf of the Canadian Solar Infrastructureyen, and ordinary income was 692 million yen.

Expected distribution per unit for the 7th period

Fund, Inc. （hereinafter referred to as “CSIF”）, I would

Although there was no acquisition during the fiscal（July 1, 2020 to December 31, 2020）, the 8th period

like to express sincere appreciation to all unitholders

period under review, the total evaluation price was（January 1, 2021 to July 31, 2021） and the 9th

for their continued patronage and support.

49.6 billion yen and CSIF was continuously the largest

period （July 1, 2021 to December 31, 2021） arelisted infrastructure fund as of the end of the fiscal

3,700 yen, 3,700 yen and 3,700 yen respectively.

In the previous fiscal period, CSIF acquired one

period. In the fiscal period under review, the operating

proper t y with borrowing and cash on hand on

revenues resulted in the forecasted range though the

CSIF is determined to maximize unitholder value by

N ovemb er 2 9, 2 0 19 （p a nel o u t pu t 10.7 M W,

slightly lower actual energy output and the net

making efforts to achieve efficient investment, taking

acquisition price 4.57 billion yen）. As a result of theincome resulted higher than the forecast contributed

advantage of the vertical integration model of theacquisition of photovoltaic power generation facility,

by efforts in cost management by asset management

Canadian Solar Group and external growth throughas of the end of the previous fiscal period, we haveactivities. Regarding the distribution per unit, there is

the acquisition of facilities mainly from the sponsor

had a portfolio of 21 properties （total panel output

no change from the revised forecast as of July 31,

pipeline to provide stable distribution.

119.7MW, total acquisition price 48.8 billion yen） and2020 as 3,700 yen comprised by profit distribution ofcontinued being the largest listed infrastructure fund.

2,992 which is increased by 155 yen from the revised

In pursuit of these initiatives, we expect theforecast and distributions in excess of earnings ofc o n t inue d un der s t a n ding a n d s upp o r t o f a ll

708 yen which is decreased by 155 yen.

unitholders.

In the 6th fiscal period, operating revenue was

Executive Director
Canadian Solar Infrastructure Fund, Inc.
CEO and Representative Director
Canadian Solar Asset Management K.K.

Tetsuya Nakamura

2,331 million yen, operating income was 840 million

Co nt ent s
DPU for the 6th FP

JPY
Forecasted DPU for the 7th FP

JPY

3,700

3,700

Forecasted DPU for the 8th FP

JPY

3,700

▶
▶

Forecasted DPU for the 9th FP

JPY

3,700

To Our Investors
Canadian Solar Group

Unique Aspect of the Fund
Highlight of the 6th FP▶ Management Interview▶ Portfolio▶ Portfolio Overview▶
▶

Sponsor Pipeline
Effort in ESG

Financial Summary
Information for Unitholders▶ Asset Management Report▶ Balance Sheet▶ Statement of Income

▶

▶

▶

▶

▶

▶

▶

▶

 tatement of Changes inS
Unitholders’ Equity
Notes
 tatement of CashSDistribution
Statement of Cash Flow

1

Canadian Solar Group

Unique Aspects of the Fund
Advantageous Operation Based on the Vertically-Integrated Model of the Group

History and Accomplishment of the Group
2001

2006

Prominent knowledge acquired by the Group as the total solution provider of solar power generation is fully utilized for theoperation of CSIF. The uniqueness of the vertically integrated model of the group is shown as below.

Founded in Ontario, Canada, as a solar panel
manufacturer

Accumulated
shipment of PV
moduleListed on NASDAQ（CSIQ）
13,000 employees globally as of today

Business covering

160

43

Canadian Solar Infrastructure Fund, Inc.

2009

Entered into the Japan market for sales of PV
modules（by Canadian Solar Japan K.K.）

2013

Started development business of solar power
plant in Japan（by Canadian Solar Project K.K.）

Systems soldin 2019

2016

Established Canadian Solar Asset Management
K.K., the asset management of the fund, as 100%
subsidiary of Canadian Solar Project K.K.

MW

2017

956

MW
solar power plants globally

Total

Installed to

15.9

130,000

GW
projects under construction
or development

houses in Japan in total

O

nd l
wn a

ease

sola

r

gy
ener

⓯ Italy⓰ Vietnam⓱ Hong Kong
⓲ Taiwan⓳ Thailand⓴ Indonesia
Canada2 Brazil
３ China
４ Thailand
５ Vietnam
6 Taiwan1

As of Jun. 30, 2020

● Base of sales

Base of manufacturing

Same boat
equity

Wafer

Ingot
1

2

5
6 15

1

3

9
2

Provide O&M
services

4
8

13
3
12
7
17
10
19 4 18 6
16 5
11
20
14

Silicon

Ve

a
r tic

lly

-in

te

PV plant
management
PV plantdevelopment

ModuleCellhigh quality solar power generation system with lower cost to customers over 160 countries worldwide.

Acquire PV
plantssSponsor Support
Agreement

Canadian Solar Group’s Global Operations❶ Canada❷ U.S.
❸ Mexico❹ Brazil❺ Germany❻ Spain❼ China❽ South Africa❾ UAE❿ India⓫ Singapore⓬ Japan⓭ Korea⓮ Australia

ect
p roj

Lease PVfacilities

Canadian Solar Group operates 7 manufacturing hubs in North America, South America and Asia providing

PV plant

G row thProject owner

Operating

900

Listed Canadian Solar Infrastructure Fund, Inc. onTokyo Stock Exchange

The image of the value chain of renewable energy business at Canadian Solar GroupOver
countries

GW＋

te
g ra

d

d
mo

el

Canadian Solar Group（incl. sponsor）

Developer

Canadian Solar Projects K.K.

$

O&M provider

Canadian Solar O&M Japan K.K.

Stable Bank Formation
CSIF has successfully achieved to obtain debt financing from Shinsei Bank, Ltd., 3 mega banks and other financial institutions. This isbecause the credibility and operational stability of CSIF are healthy enough for them to provide with the debt finances and we believe
additional finance for future acquisitions of new assets can be obtained in stable manner.

Canada（2009）

U.S.
（2010）

Source: Compiled by the Asset Manager based on “Investor Presentation as of Dec. 9, 2019” by Canadian Solar Inc.
（Note）
T here is no assurance that we can acquire the solar energy projects showed in the above pictures in the future as ofthis writing.

2

Global Offering
CSIF issues about the half of new units in the overseas market through the public offering process. By having foreign unitholders,
Canadian Solar Asset Management K.K., the asset manager of CSIF, operates the fund in a way such foreign investors can support.in linewith the global standard of infrastructure fund management. Also, the base of the candidate investors can be broaden so that the liquidityof the units is heighten and future public offerings are conducted stably.

3

Financial Highlights

Management Interview

Distribution Per Unit for the 6th FP

JPY

Operational Revenue for the ６th FP

3,700

JPY

Operating Income for the 6th FP

JPY

JPY

2,331mln

JPY

JPY

in order to achieve

691mlnForecasted DPU
for the 8th FP

3,700

the Renewable Energy Business

Net Income for the 6th FP

840mlnForecasted DPU
for the 7th FP

Aim to broaden

the Sustainable Developmentof the Economy

Forecasted DPU
for the 9th FP

3,700

JPY

3,700
Executive Director Canadian Solar Infrastructure Fund, Inc.
CEO and Representative Director Canadian Solar Asset Management K.K.

Historical Distribution and Forecast（JPY）

DPU（excl. distributions in excess of earnings）

4,000

3,600

3,650

3,650

577
3,000

2,350
2,000

0

3,700

3,700

3,700

708

648

788

645

Q1

808
3,073

1,000

3,700

1,340

1,817

1,542

2nd FP

2,310

1,783

3rd FP

4th FP

5th FP

Tetsuya Nakamura

Per unit distributions in excess of earnings

2,992

6th FP

3,052

7th FP（Forecast）

2,912

8th FP（Forecast）

3,055

9th FP（Forecast）（Note）Figures for the 7th~9th Fiscal Period are forecasts and are subject to change. They do not represent guaranteed
distribution amounts.

C SIF leases photovoltaic power generation

Even the recent spreading of the COVID-19

facilities, assets it owns, to lessees and receives

pandemic did not directly impact the electricity

rents from them. Lessees sell electricity that they

output of the power generation facilities we own. In

generate using the feed-in tariff（FIT）scheme, andterms of a decline in electricity demand due to theC S I F receives rent s based on the volume ofstagnation of the overall economy, there seemed toelectricity sold. Therefore, CSIF's revenue is linked

be an indirect impact as typically shown by an

to the actual results of the volume of electricity sold.

increase in the number of output curtailments at

The historical actual financial results of CSIF show

power generation facilities in the Kyushu area, butthat they are unaffected by the economic trends.

the impact on the overall portfolio seemed limited.

Q2

4

How did the COVID-19 pandemic impact your business and financial results?

How do you see the market environment and trends in the investment unit price of
CSIF in the first half of this year?

The Nikkei Stock Average and the Tokyo Stock

the COVID-19 pandemic. However, while the investment

Exchange（TSE）REIT Index declined significantly fromunit prices of listed infrastructure fundss including CSIF

the second half of February to mid-March 2020 due tofell in a similar fashion, the decline was limited andthe stronger risk-averse attitude of investors reflecting

recovered favorably after that. The rate of change in5

investment unit prices in the meantime was also limited

unaffected by economic trends, which is one of its

will enable CS Mashiki-machi Power Plant to shift frommeasure. In addition, while there is a possibility thatcompared with the Nikkei Stock Average and the TSE

business characteristics, as past records show. Given

full-day control to hourly control centered around peakoutput curtailment will be conducted in areas other than

REIT Index. Once again, it was found that risks asthat the start of publication of the TSE Infrastructure

hours while maintaining the upper limit of 30 days at the

Kyushu, such as Tohoku and Chugoku, we will also

investment products were limited in an emergency. The

Funds Index on April 27, 2020, is also likely to contributeproceed with the revision of online curtailment control as

investment unit price of CSIF at the end of June 2020

to the activation of the trading of investment units in

power plant to which the 30-day rule is applied.
We expect that the impact on CSIF will be diminisheddeclined 4.4% from the beginning of the year, smaller

overall infrastructure fund, it seems that an environment

to a certain extent after the 8th fiscal period due to thispower plants we own in these areas.

than the declines of 5.8% and 22.5% in the Nikkei Stock
Average and the TSE REIT Index, respectively. This is

will be developed that facilitates investment.
We will continue to contribute to the investment of

partly because investors are gradually starting toinvestors by operating CSIF, taking advantage of theseunderstand that CSIF achieved relatively stable results,characteristics.

●

Historical Investment Unit Price and Indexes（assuming that the price and indexes on January 6, 2020 are 100）
CSIF Unit Price
TSE REIT Index

TSE Infrastructure Index

Historical Volatility for 30 Days
CSIF Volatility
TSE REIT Index Volatility

Nikkei Average Volatility

What is the impact of the amendment of the Renewable Energy Act, which has been
discussed since the previous period?
How does CSIF currently recognize other important system changes?

The Renewable Energy Act was amended on June

II）With regard to the FIP program, the purchase25, 2020, and the amended act will take effect on

price of generated electricity will be reviewed

April 1, 2022. The main points of the amendment

periodically（every month to every year）, becauseare I）the Reserve Fund System for Power Generating

the FIP program will shift to a system to deliver thepurchase price by adding a certain premium（supply

110

120

100

100

90

80

Facility Demolishing Costs, II）the FIP Program, and

80

60

70

40

III）the System to Automatically Nullify Certification

promotion subsidy）on the market price after the FIT

60

20

program is terminated. Regarding the impact on

50

0for Power Plants with a Delayed Start of Operation.
I）Regarding the details of the system for reserving
fund for demolishing costs of power generating

fluctuations in rent income CSIF to be received andfacilities, the following proposals were made in thewhether it is possible to procure debt appropriatelyinterim report on disposal costs and the positioning

from financial institutions. The evaluation ofof renewable energy as a main power source. It isbusiness value based on a more elaborate cash flow

proposed that ① the categories to be covered are allmodel, including the future market outlook, will becertified solar power generation projects of 10MW or

06-Jan20

Q3

6

Nikkei Average●

Q4

appropriate after analyzing the cost effectiveness at the

06-Feb 06-Mar
20
20

06-Apr 06-May
20
20

06-Jun20

06-Jul
20

6-Jan
20

6-Feb
20

6-Mar
20

6-Apr
20

6-May
20

6-Jun
20

6-Jul
20

The impact of output curtailment was the greatest in the 6th fiscal period, contrary
to your previous expectation. Will the impact continue to be greater?
In addition, will you take any specific measures?

CSIF, it will be important to determine anticipated

In the 6th fiscal period, output curtailment wasaffected by the COVID-19 pandemic. For the 7th fiscal

more; ② the fund reserving method is externalrequired.
III）Considering the automatic nullification of

conducted by Kyushu EPCO for 71 days, and the finallyperiod, we expect the impact to be limited comparedaccumulation into the Organization for Cross-regional

certification for power plants the operation start ofcalculated assumed lost variable rent income was about

with the 6th fiscal period, given that operation remains

Coordination and Transmission Operators（OCCTO）,

which is delayed, it will not have a direct impact on

82 million yen. The ratio to the expected rent income wassuspended at two reactors at the Sendai Nuclear Powerand internal accumulation is possible if certain

C SIF because we regard it as an issue in the

3.4%. In our initial forecast, the frequency and degree ofPlant for the construction of anti-terrorism facilities,

requirements are met; ③ the fund reserving period is

output curtailment was likely to be limited, given that thewhich are likely to resume operation at the end of

10 years before the termination of the FIT period;④development stage.
Other important system changes include theconstruction work of anti-terrorism facilities was to begin

December 2020 and January 2021, respectively, and thethe accumulation amount is calculated based on the

P o w e r P r o d u c e r- s i d e B a s i c C h a r g e（ t o b e

in the No. 1 and 2 reactors at the Sendai Nuclear Powerregular inspection of the No. 3 Reactor at the Genkai

level of disposal costs assumed in the calculation of

implemented in 2023）. In this system, power

Plant operated by Kyushu EPCO on March 16 and May

procurement price by the Procurement Priceproducers will incur costs for maintaining and20, 2020, respectively, and that the operation of nuclear

Nuclear Power Plant is planned in September.
While CS Mashiki-machi Power Plant, with the largest

Calculation Committee for projects certified before

managing power transmission and distribution

power plants was therefore expected to decline.

panel output in our portfolio, makes up more than 70% of

fiscal 2019 for which the procurement price has

networks according to their power generation size.

However, higher-than-expected output curtailment was

the total panel output of nine photovoltaic power plants

already been determined. Regarding the direct

However, the final plan of the system has yet to be

conducted due to an increase in the number of new

owned by CSIF in the Kyushu area, we are proceeding

impact on CSIF, the calculation amount has not yet

determined. Never theless, supplementar yphotovoltaic power plants operated in the jurisdictionalwith its revision to online curtailment control by Kyushu

been determined, but we expect that cash flows after

resolutions at the Diet deliberations and thearea of Kyushu EPCO and a fall in demand for electricity

EPCO as a future measure, which is expected to be

the 11th year of the FIT period will be affected toCommittee on Economy, Trade and Industry of thecompleted at the end of September 2020. The revisionsome extent.

7

H ouse of Represent atives s tipulate that due

considerable disadvantage compared with otherconsideration be given to the situation of existing FIT

business operations. Therefore, the impact on CSIF

business operators so that they will not suffer awill be limited.

Q5

but this has not yet become a reality. What is your future outlook?

While CSIF has consistently focused on the acquisition

that a longer preparation period is necessary to acquire
properties in the secondary market, partly because it

You seem to be using your policy of financing debt through the capital market more actively,

number of channels in the secondary market have been

takes time to build relationships with related parties,

as indicated by your submission of the shelf registration statement for the issuance ofinvestment corporation bonds in the current fiscal period, following the issuance of private
placement investment corporation bonds in the previous fiscal period.
What is your future policy?

proposed to us, and we will continue to examine a range

including land owners and local governments, to manageof potential properties. The difficulty of acquisition is

power plants such as operation and maintenance（O&M）

increasing in the secondary market because of the rise in

and to conduct due diligence, given that the sponsor is notalternative investments in Japan and overseas that notethe relatively stable business income of photovoltaic

involved from the development stage.
Because the acquisition of properties developed by third

power plants in an environment where long-term interest

parties will contribute to the growth of CSIF's portfolio andrates have long remained low, as well as strong inquiries

its regional diversification, CSIF will continue diligent

from renewable energy business operators. It is also true

study to meet the expectations of unitholders.

by receiving an upgrade from Japan Credit Rating

institutional investors exists for investment corporation

Agency, Ltd.（JCR）to "A" and acquiring a new rating ofbonds issued by infrastructure investment corporations,"A-" from Rating and Investment Information, Inc.（R&I）.

given that the issuance of private placement investment

Therefore, we will be able to develop more flexible

corporation bonds in the previous fiscal period wereconcluded successfully. This has enabled us to issue

financial strategies in the future.
At the same time given the nature of bonds, thepublic offering investment corporation bonds up to 10

issuance will be significantly affected by the market

billion yen by filing the shelf registration statement forenvironment. We will use them effectively, paying

the issuance of investment corporation bonds on Juneattention to maintaining a balance with bank loans when26, 2020, for the first time as a listed infrastructure

we use the proceeds for the acquisition of assets andinvestment fund. We also follow strategies to expand

the refinancing of existing loans, while continuing to

the investor base, including preparations for theobserve trends in market interests and investor demand.

issuance of public offering investment corporation bonds

8

You set a policy of acquiring properties from the secondary market for some time,of properties from the sponsor pipeline, properties from a

We found that a cer tain level of demand fromQ6

Q7

What progress have you made most recently in terms of sustainability?

Q8

Recently, while CSIF has had little progress in acquiring properties for future external
growth, properties acquired from the sponsor pipeline seem to be declining.
Do you think this situation is temporary or is there any change in your strategy?

While the development of power plants has not

the fact that the majority of the pipeline assets has the FIT

progressed as planned at the sponsor for the last six

price of 32 to 40 yen. In addition, the sponsor is able tomonths due to the impact of the COVID-19 pandemic,

respond flexibly to both land ownership and the right ofproperties acquired from the sponsor pipeline declined

superficies as its basic policy. Its policy of actively

slightly year on year as of the end of June 2020. However,developing green field projects, taking advantage of the

we still maintain the fulfilling pipeline with a total panel

benefits of the Group operation, and selling developed

output of more than 350MW, although properties acquired

power plants to CSIF on a preferential basis to the extent

from the sponsor pipeline have declined somewhat. Therepossible remains unchanged. We therefore believe that theare still a plenty of factors for external growth, including

pipeline will continue to be enhanced.

As an external certification or evaluation on ESG,Management K.K.（CSAM）, an asset manager of

CSIF was assigned "Green 1," the highest grade in

CSIF, becoming a signatory of the United Nations't he over a ll eva lua t io n o f t he G r een F ina n c e

Principles for Responsible Investment（PRI）, CSIF will

Framework Evaluation, from Japan Credit Rating

actively incorporate this stance in an ESG framework

Agency, Ltd.（JCR）on May 11, 2020, in order to limit
the use of funds raised by green bonds and green

policy that CSIF will formulate in the future.
Moreover, while some of the assets we ownloans to the use of effective funds for environmental（including land outside the business area to which

improvement. CSIF was also assigned a preliminary

CSIF has land rights）have sustained damage from

evaluation（the highest evaluation "Green 1"）as a

abnormal weather thought to be caused by global

green bond from JCR on August 14, 2020. The

climate change, which has occurred frequently inpurpose of acquiring the evaluation is to enhance therecent years, we aim to operate as sustainable powershareholder value by raising environmentallyplants by using insurance and making necessary andconscious funds and continuing to work actively on

sufficient repairs and capital expenditure after having

environmental issues.
In addition, based on Canadian Solar Assetdiscussions with local communities and residents,¥24/kWhconsidering the local environment.

July 15, 2039

New Assets to be Acquired
The first PV power plant in Hokkaido region for CSIF and area diversification will proceed.
（after the acquisition… Kyushu region: 9 assets, other region: 14 assets）
S-22

CS Ishikari Shinshinotsu-mura Power Plant

S-23

CS Osaki-shi Kejonuma Power Plant

Acquisition Price

Acquisition Price

Location

Location

Panel Output

Panel Output

Purchase Price

Purchase Price

FIT Expiration

FIT Expiration¥680,000,000
Shinshinotsu-mura,
Ishikari-gun, Hokkaido
2,384.6kW¥208,000,000
Furukawa,
Osaki-shi, Miyagi
954.9kW¥21/kWh

July 21, 2039

9

Portfolio
Portfolio Highlight

As of Jun. 30, 2020

# of Projects

21

Total Acquisition Price

PV Facilities

JPY

Panel Output of AUM

48.85

119.7

bln

MW

（Note）“Total Acquisition Price” is total of the purchase prices based on the sales and purchase agreement for each project.

Total Energy Output for the Period
6th FP Actual Energy Output / 6th FP Projected Energy Output ＝Projected（MWh）15,00010,000

Actual

7,789
6,760

8,652
8,616

11,032
10,52813,347
13,19098.90％

14,081
13,68012,765
11,4995,000

0Jan. 2020Feb. 2020

Mar. 2020

Apr. 2020

May. 2020

FIT Price Range and Regional Allocation

AUM
Ratio
by FIT（7.3％）

Historical panel output of AUM
（MW）

120

30.3

100
80

72.7

3.2

10.7

2.5

60

10.7
3.2
30.3
2.5
72.7

40

10

（JPY billion）

IPO

Acquired Acquired Acquired Acquiredin 2nd FP in 3rd FP in 4th FP in 5th FP■ ～2MW（8）

Total

Valuation priceBook value

55
50

47.09

50.02

45
40
35

20
0

■ 2MW～5MW（10）

Historical valuation and book value(after depreciation)
119.7

140

■ 5MW～（3）

Size
per Asset■ JPY 36/kWh （58.3％）■ JPY 32/kWh

Jun. 2020

As of Jun. 30, 2020

■ JPY 40/kWh （34.4％）

30

33.86
30.44
IPO

List of Power Plant Assets

35.96

42.07 42.67

51.49

49.58

46.47 45.57

Panel output
(kW)

525

1.06

1,224.00

372

345

0.70

931.77

Kasama-shi, Ibaraki

907

995

2.01

2,127.84

CS Isa-shi Dai-ni PP

Isa-shi, Kagoshima

778

717

1.45

2,013.99

S-05

CS Yusui-cho PP

Aira-gun, Kagoshima

670

614

1.24

1,749.30

S-06

CS Isa-shi Dai-san PP

Isa-shi, Kagoshima

949

881

1.78

2,225.08

S-07

CS Kasama-shi Dai-ni PP

Kasama-shi, Ibaraki

850

849

1.71

2,103.75

S-08

CS Hiji-machi PP

Hayami-gun, Oita

1,029

947

1.91

2,574.99

S-09

CS Ashikita-machi PP

Ashikita-gun,Kumamoto

989

929

1.87

2,347.80

S-10

CS Minamishimabara-shi PP(East & West)

Shimabara-shi,Nagasaki

1,733

1,684

3.40

3,928.86

S-11

CS Minano-machi PP

Chichibu-gun, Saitama

1,018

1,087

2.19

2,448.60

S-12

CS Kannami-cho PP

Tagata-gun, Shizuoka

514

546

1.10

1,336.32

20,084

21,07142.49

47,692.62

246

247

0.50

636.00

Project name

S-01

CS Shibushi-shi PP

Shibushi-shi, Kagoshima

540

S-02

CS Isa-shi PP

Isa-shi, Kagoshima

S-03

CS Kasama-shi PP

S-04

5th FP 6th FP

Kamimashiki-gun,
Kumamoto
Koriyama-shi,
Fukushima

S-13

CS Mashiki-machi PP

S-14

CS Koriyama-shi PP

S-15

CS Tsuyama-shi PP

Tsuyama-shi, Okayama

746

755

1.52

1,930.50

S-16

CS Ena-shi PP

Ena-shi, Gifu

757

807

1.63

2,124.20

S-17

CS Daisen-cho PP (A)(B)

Saihaku-gun, Tottori

10,447

10,44221.06

27,302.40

S-18

CS Takayama-shi PP

Takayama-shi, Gifu

326

327

0.66

962.28

S-19

CS Misato-machi PP

Kodama-gun, Saitama

470

462

0.93

1,082.00

S-20

CS Marumori-machi PP

Igu-gun, Miyagi

850

825

1.66

2,194.50

S-21

CS Izu-shi PP

Izu-shi, Shizuoka

4,569

4,528

9.13

10,776.80

48,85049,588100.00119,713.6

Total

31.11
2nd FP 3rd FP 4th FP

Investment
nt ratio(％)

Location

Acquisition
Price
price
(yen millions)(yen millions)No.

(Note) “ Price” refers to the median project valuation report amount, which is the estimated values provided to us byPricewaterhouseCoopers Sustainability LLC (S01 – S18) and Ernst & Young Transaction Advisory Services Co., Ltd.
(S-19 – S-21) in its project valuation reports as of June 30, 2020.

11

Portfolio Overview *as of the end of the ６th FP

S-01

CS Shibushi-shi PP

S-06

・Panel Output

CS Isa-shi Dai-san PP

S-11

Minano-machi PP・End of FIT Period

September 12, 2037

・End of FIT Period

・End of FIT Period

September 16, 2034

JPY 32/kWh

JPY 32/kWh

JPY 40/kWh・End of FIT Period

2,124.20kW

・FIT Price

・FIT Price

・FIT Price

JPY 40/kWh・Panel Output

2,448.60kW

2,225.08kW

・FIT Price

December 6, 2036

September 15, 2035

S-17
S-02

CS Isa-shi PP

S-07

・Panel Output

・FIT Price

・FIT Price

・FIT Price・End of FIT Period

・End of FIT Period

・End of FIT Period

CS Kasama-shi PP

March 2, 2037

September 23, 2035

CS Hiji-machi PP

S-13

・Panel Output

・Panel Output

・FIT Price

・FIT Price

・FIT PriceCS Ashikita-machi PP

S-14

S-19

CS Misato-machi PP・Panel Output

1,082.00kW

・FIT Price

JPY 32/kWh・Panel Output

・FIT Price

・FIT Price

・FIT Price・End of FIY Period

・End of FIT Period

・End of FIT Period

636.00kW

2,347.80kW

March 26, 2037

S-20

CS Marumori-machi PP・Panel Output

JPY 32/kWh

JPY 40/kWh

2,194.50kW

・FIT Price

September 15, 2036

December 10, 2035

June 28, 2035

October 9, 2037

・End of FIT Period

・Panel Output

JPY 36/kWh

JPY 32/kWh・End of FIT Period

Koriyama-shi PP・Panel Output

2,013.99kW

962.28kW

・FIT Price

June 1, 2037

October 12, 2035

S-09

・Panel Output

・End of FIT Period

・End of FIT Period

June 25, 2035

CS Isa-shi Dai-ni PP

JPY 36/kWh

JPY 36/kWh

・End of FIT Period

CS Takayama-shi PP

47,692.62kW

2,574.99kW

JPY 40/kWh

S-18

Mashiki-machi PP・Panel Output

2,127.84kW

JPY 40/kWh・End of FIT Period
August 9, 2037

JPY 36/kWh

JPY 40/kWh

S-08・Panel Output
20,885.76kW（A）、
6,416.64kW（B）
・FIT Price

1,336.32kW

2,103.75kW

June 8, 2035

CS Daisen-cho PP（A）（/ B）

Kannami-cho PP・Panel Output

JPY 40/kWh

S-04

S-12

・Panel Output

931.77kW

S-03

CS Kasama-shi Dai-ni PP

CS Ena-shi PP・Panel Output

・Panel Output

1,224.00kW

S-16

JPY 36/kWh

・End of FIT Period
S-05

CS Yusui-cho PP

S-10

・Panel Output

1,749.30kW

・FIT Price

JPY 36/kWh

・End of FIT Period

August 20, 2035

12

Minamishimabara-shi PP (East & West)・Panel Output

3,928.86kW

・FIT Price

JPY 40/kWh・End of FIT Period
December 24, 2035（E）
January 28, 2036（W）

S-15

July 12, 2038

Tsuyama-shi PP・Panel Output

1,963.00kW

・FIT Price

JPY 32/kWh・End of FIT Period

June 29, 2037

S-21

CS Izu-shi PP・Panel Output

10,776.80kW

・FIT Price

JPY 36/kWh

・End of FIT Period

November 29, 2038

13

Sponsor Pipeline

Effort in ESG

Achieve ¥100Bn in asset size within 2 years by mainly acquiring assets from sponsor pipeline

On August 13, 2019, Canadian Solar Asset Management K.K（“TheOperational and underconstruction

Under development

14 projects,137.8MW

Total sponsor portfolio

25projects,354.9MW

11projects,217.2 MW

1.8MW

ENR projects

Operational start year and status of sponsor portfolio assets
（MW）

400.0

Operational

Under construction

Under development

300.0

171.6

200.0

0

15.6
65.4

26.7

Operational

2020～

2021～

2022～

CS Gunma Takasaki KG PP（24.5ＭＷ）

CS Shimane Hamada PP（2.0ＭＷ）

CS Gunma Minakami PP（19.0ＭＷ）

CS Hiroshima Suzuhari PP

CS Gifu Kamitakara PP

CS Yamaguchi Hofu PP

CS Okayama Shin-yubara PP（17.9ＭＷ）（7.0ＭＷ）

CS Fukuoka Saigawa PP（13.0ＭＷ）

CS Fukuoka Tagawa PP（0.8ＭＷ）

CS Oita Hiji PP（53.4ＭＷ）

CS Oita Munechika PP（8.2ＭＷ）

CS Kumamoto Mashiki Dai-ni PP（1.2ＭＷ）

CS Kumamoto Yamato PP（1.2ＭＷ）

CS Higashikagawa PP（2.6ＭＷ）

CS Higashikagawa Dai-ni PP（2.1ＭＷ）（20.1 MW）
（30.0ＭＷ）

Company”）., the asset management company of CSIF, announced that it
signed the United Nations Principles of Responsible Investment（UN PRI）.
The Company has been actively making ESG efforts in the Canadian Solar
Group and the operation of CSIF, and with the declaration of this signature, itwill work on the operation of CSIF, taking ESG（Environmental, Social and Governance）issues into consideration.

External Certification and Recognition Related to ESG
As of Jun. 30, 2020

354.9MWOn May 11, 2020, CSIF obtained Green 1(F) rating, the highest overall rating in the JCR Green
Finance evaluation, for the framework we established to limit the use of funds procured through green
bonds and green loans to those with environmental improvement effects.

217.2

Preparations to Formulate ESG Framework Policies

72.4

factors in the series of processes from the screening of investment projects to due diligence, asset

In ESG framework policies to be established going forward, CSIF will clarify how to incorporate ESG

1.2

44.4

Map of owned assets and sponsor assets

14

ENR projects

30.0

100.0

Signatory to UN PRI

2023～

65.4

1.8

Total

ENR projects● Operational ● Under construction● Under development ● Acquired by CSIF

CS Hokkaido Ishikari PP（2.4ＭＷ）

CS Miyagi Kejonuma PP（0.9ＭＷ）

CS Miyagi Angel Land PP（9.2ＭＷ）

CS Miyagi Ogawara PP（7.2ＭＷ）

CS Azuma Kofuji PP

acquisition and asset management.

Major ESG-related efforts made thus far in the Canadian Solar Group and the operation of CSIF
are as follows.

Environmental（Environmental Considerations）⃝CSIF is contributing to the dissemination of renewable energy through its listing on theinfrastructure fund market and by raising funds from this market.
⃝C SIF emphasizes environmentally conscious operation in the surrounding areas,
including the use of non-chemical panel cleaning fluid at its power generation facilities.
⃝The Company avoids excessive land development by the sponsor, achieving for the
installation of power generation facilities that take advantage of the original land form.

Social（Social Contributions）（100.0ＭＷ）⃝Canadian Solar Project K.K.（“CSP”）, the sponsor of the CSIF, constructed the Daisen Canadian Garden and donated it

CS Tochigi Kitsuregawa PP

to the Daisen-cho Town Government in commemoration of the completion of S-17 CS Daisen-cho Power Plant as part of（1.2ＭＷ）

CS Ibaraki Kurusu PP（11.3ＭＷ）

CS Ibaraki Kasama PP（12.0ＭＷ）

CS Saitama Kumagaya PP（2.0ＭＷ）

CS Hiroshima Fukuyama PP（3.4ＭＷ）

its contribution to local communities under the concept of an ambitious attempt for
harmony between nature and large-scale solar power plant. In addition, it repaired theHima Jinja Shrine in the same town and donated an incense holder made of white
granite to the Shimpukuji Temple.
⃝C SP and the Company offered consolatory donations to the Marumori-machi Town
Government. The town was severely hit by Typhoon Hagibis in October 2019.

Governance（Corporate Governance）⃝The Company is working to strengthen governance by taking measures against the conflicts of interest and adopting an
operation system that secures the third-party nature.
⃝O perations are conducted under an appropriate check function among departments and persons in charge due to theenhancement of the organizational structure, which has been advocated since the second half of 2018.

15

Financial Summary

Information for Unitholders

Financial soundness attributed to fixed interest rate conversion / LTV level is under stable controls
Fixed-to variable interest rate ratio（as at end of June 2020）

LTV（as at end of June 2020）

Unit price performance
Unit price（JPY）

Volume（right axis） Unit price（left axis）

81.36

54.31

%

120,000%

110,000（Note）
“ Fixed-to-variable interest rate ratio” refers to the ratio of fixed interest rate liabilities to total interest-bearing liabilities atthat time. Variable interest rate liabilities that were converted to fixed interest rate liabilities through interest rate swap
agreements were deemed as fixed interest rate liabilities. “LTV” are calculated without consumption tax bridge loan.

100,000

Category Type

Loan

Initial amount Outstanding(yen millions) (yen millions)
15,70013,602

Base rate plus 0.45%(fixed at 0.845% upon executing interest rate swap)

Fixed

31-Oct2017

10 years from drawdown date
JCR Green Finance Evaluation

Longterm

8,000

7,210

Base rate plus 0.45%(fixed at 1.042% upon executing interest rate swap)

Fixed

6-Sep201810 years from drawdown date

Longterm

700643

Base rate plus 0.45%

Variable

29-Mar2019

3 years from drawdown date

Base rate plus 0.45%

29-NovVariable2019

2 years from drawdown date

6-Nov20195 years from issuance date

4,500

4,377

Sub total of Loan

29,20025,832Longterm

1,100

1,100

Sub total of Bond

1,100

1,100

Total

30,30026,932

Bond

0.71%

Fixed

Subject to Rating

Rating Date

RatingBefore After

Long-term Issuer Rating

July 31, 2020

A-

A

StableJapan Credit Rating Agency, Ltd.

The 1st Unsecured Investment Corporation Bond
(only for Qualified Institutional Investors)

July 31, 2020

A-

A

ー

Rating and Investment Information, Inc.

Long-term Issuer Rating

August 7, 2020

New

A-

StableOutlook

Historical balance of interest-bearing debt
（JPY million）
40,00030,00020,00010,0000Loan（short-term)

2017

2018

2019

Feb. 4, 2019

Loan（long-term） Bond

2020

2021

2022

2023

2024

2,400
1,800
1,200

Mar. 4, 2019

Apr. 4, 2019

May. 4, 2019

Jun. 4, 20190Juｌ. 4, 2019

2025

2026

2027

■ Individuals / others
11,706（97.50%）■ Individuals / others
128,197units（55.45%）■ Financial institutions
20,183units（8.72%）(incl. financial instruments firms）# ofInvestment
units：■ Financial institutions
38（0.31%）（incl. financial instruments firms）# ofUnitholders：

12,005■ Domestic corporates
50,934units（22.03%）

231,190■ Domestic corporates
195（1.62%）■ Foreign entities & individuals
66（0.54%）■ Foreign entities & individuals
31,876units（13.78%）

IR calendar

Announcement offinancial results

Fiscal period end

Credit rating
Rating Agency

3,000

600

Maturity

Longterm

Longterm

3,600

Unit price at
beginning of 2020:
119,600 yen
Forecasted 5th FP DPU:
3,650 yen
DPU yield: 6.1%（annual）

Status of unitholders

Interest Drawdown
rate typedate

Interest rate

4,200

90,00080,000Jan. 4, 2019

Debt profile（Units）

Unit price at ending of 6th FP:
114,100 yen
Forecasted 6th FP DPU:
3,700 yen
DPU yield: 6.4%（annual）

130,000

Payment of dividend
Asset management report

June

July

AugustSeptember

OctoberNovember

DecemberJanuary

February

March

April

May

Fiscal period end

Announcement offinancial results

Payment of dividend
Asset management report

Memorandum for unitholders
End of fiscal period

June 30 and December 31

Dividend payment record dateJune 30 and December 31（payment is to be made within 3 months after the date）

Listed financial instruments exchangeTokyo Stock Exchange（securities code: 9284）

Unitholders’ meeting

Once a every 2 years

Public announcement newspaper

Nihon Keizai Shimbun（Nikkei）

Administrator of unitholder list etc.

Sumitomo Mitsui Trust Bank, Limited[Contact information]

Izumi 2-8-4, Suginami-ku, Tokyo 168-0063
Sumitomo Mitsui Trust Bank, Limited
TEL: 0120-782-031(Note) Amount after 2020 is based on the forecast as of August 14, 2020.

16

17

Ⅰ. Asset Management Report
1. Overview of Fund Operation(Note 1) Fiscal periods of the fund are six months for January 1 to June 30 and July 1 to December 31 every year. The 2nd FP was from
October 1, 2017 to June 30, 2018. Although the number of days for the 2nd FP was 273 days, the substantive operating period
was from October 30, 2017 to June 30, 2018 (244 days).
(Note 2) Consumption taxes are not included in the operating revenue etc.
(Note 3) Unless otherwise described, the numbers are rounded down and the ratio are rounded up or down.
(Note 4) The calculation methods are as below.

(1) Historical Operating Result of the Fund
2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Operating Revenue (in JPY mln)

2,023

1,785

2,185

2,088

2,331

(Rental revenue of renewable energy power plants, out of
operating revenue) (in JPY mln)

2,023

1,785

2,185

2,088

2,331

Operating Expense (in JPY mln)

1,178

1,140

1,368

1,391

1,490

(Expense for rental of renewable energy power plants, out of
operating expense) (in JPY mln)

1,066

1,035

1,234

1,261

1,362

Operating Income / Loss (-) (in JPY mln)

845

644

817

696

840

Ordinary Income / Loss (-) (in JPY mln)

331

413

711

534

692

Net Income / Loss (-) (in JPY mln)

330

412

710

534

691

Unitholders’ Capital (net) (Note 6) (in JPY mln)

17,315

21,902

21,482

21,34921,039Total number of units issued (unit)

182,190

231,190

231,190

231,190

231,190
49,132

Fiscal Period

Total Assets (in JPY mln)
(vs prior FP) (%)
Total Net Assets (in JPY mln)
(vs prior FP) (%)

35,841

46,77345,98150,06935,386.1

30.5

(1.7)

8.9

(1.9)

17,59622,31522,193

21,883

21,731

17,496.0

26.8

(0.5)

(1.4)

(0.7)

Interest-bearing Liabilities (in JPY mln)

18,10324,29723,513

27,97326,931Net Asset Value per Unit (Base price) (in JPY)

93,99896,58396,523

95,996

94,656

Total Distribution (in JPY mln)

428

832

843

843

855

Distribution per Unit (in JPY)

2,350

3,600

3,650

3,650

3,700

(DPU excl. distribution in excess of earnings, in JPY)

1,542

1,783

3,073

2,310

2,992

(Distribution in excess of earnings per unit, in JPY)

808

1,817

577

1,340

708

Return on Assets (Note 4) (%)

1.8

1.0

1.5

1.1

1.4

(annualized ratio) (Note 5) (%)

2.8

2.0

3.1

2.2

2.8

Return on Capital (Note 4) (%)

3.7

2.1

3.2

2.4

3.2

(annualized ratio) (Note 5) (%)

5.6

4.1

6.4

4.8

6.4

Capital Ratio (Note 4) (%)

49.1

47.7

48.3

43.7

44.2

(vs prior FP) (%)(50.3)

(1.4)

0.6

(4.6)

0.5

Distribution Payout Ratio (Note 4) (%)

76.9

100.0

100.0

100.0

100.0

Number of Days for FP (days)

244

184

181

184

182

Number of Invested Asset as of End of FP

15

18

20

21

21

Depreciation Expenses (in JPY mln)

743

713

813

839

911

[Other Information]

CAPEX (in JPY mln)

-

27

54

6

10

1,700

1,462

1,764

1,665

1,881

FFO (Funds from Operation) (Note 4) (in JPY mln)

1,074

1,125

1,523

1,374

1,604

FFO per Unit (Note 4) (in JPY)

5,895

4,869

6,591

5,943

6,938

Interest-bearing Liabilities Ratio (Note 4) (%)

50.5

51.9

51.1

55.9

54.8

Rental NOI (Note 4) (in JPY mln)

18

Return on Assets
Return on Capital

Ordinary Income / { (Total Assets at Beginning of FP + Total Assets at End of FP) / 2 }x 100
Net Income / { (Net Assets at Beginning of FP + Net Assets at End of FP) / 2 } x 100

Capital Ratio

Net Assets at End of FP / Total Assets at End of FP x 100

Distribution Payout Ratio

DPU excl. distribution in excess of earnings / Net Income x 100

Rental NOI

Rental Revenue for renewable energy power generation facilities – Rental Expenses
for renewable energy power generation facilities + Depreciation Expenses

FFO
FFO per unit

Net Income + Depreciation Expenses + Profit from sales of renewable energy power
generation facilities
FFO / The number of total issued units

Interest-bearing Liabilities Ratio

Interest-bearing Liabilities / Total Assets x 100(Note 5) For the 2nd FP, the days for the substantive operating period (244 days) is used for annualization instead of the actual number ofdays (273 days).
(Note 6) Deductible amount for unitholders’ capital is deducted from the gross amount of unitholders’ capital.

(2) Overview of the Fiscal Period under Review

a. Brief History of Canadian Solar Infrastructure Fund
Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as “CSIF”) was established on May 18,
2017 with money invested of 150 million yen (1,500 units) by Canadian Solar Asset Management K.K.
(hereafter referred to as the “Asset Manager”) as the founder under the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951 including subsequent amendments; hereinafter referred to as
the “Investment Trusts Act”). Registration with the Kanto Local Finance Bureau was completed on June 9,2017 (registration number 127, filed with the Director of the Kanto Local Finance Bureau).
CSIF issued additional investment units (177,800 units) through a public offering on October 27, 2017,
listed its investment units on Tokyo Stock Exchange Inc.’s (hereinafter referred to as the “Tokyo Stock
Exchange”) Infrastructure Fund Market on October 30, 2017 (security code: 9284), and issued newinvestment units (2,890 units) through third-party allotment on November 28, 2017.
In addition, CSIF issued new investment units (46,667 units) through public offering on September 5,2018 and issued new investment units (2,333 units) through third-party allotment on October 4, 2018. As aresult, the total units issued at the end of the fiscal period under review (as of June 30, 2020) were 231,190
units.
b. Investment Environment
During the fiscal period under review, the Japanese economy felt the brunt of the COVID-19 pandemic on
the demand side during the first half, with consumer spending and exports weakening due to the voluntarysuspension of normal economic activity, supply constraints caused by the suspension of operations at
plants in China, and the deterioration of overseas economies, and Japan’s real GDP fell by 2.2% on anannualized basis and 0.6% quarter on quarter in January-March. In the second half, the effects of the
COVID-19 pandemic became starkly evident and Japan’s real GDP is expected to fall by more than 20%
during the April-June quarter.
The stock market in Japan fell slightly in January amid growing fears of a global recession triggered by
the spread of the COVID-19, which emerged in Wuhan, China, despite a temporary upturn in investor
confidence following the signing of the “phase 1” U.S.-China trade deal. Subsequent developments such as
sharp increases in infections in Europe and the U.S., the WHO pandemic declaration, and concern over the
global economic impact of entry restrictions from Europe imposed by the U.S. caused shares to fall acrossthe board, with the Nikkei average also briefly breaking below 17,000 yen. Compared with its end-2019
level, the Nikkei average fell 20%, its biggest drop since 2008 after Lehman's bankruptcy filing. In thesecond quarter, the world’s major stock markets trended up, reflecting growing moves to reopen economies
and hopes that outbreaks in Europe and the U.S. had peaked as well as positive market reactions tostimulus packages around the world in April and expectations for a gradual resumption of economic activity
amid the growing tendency to lift restrictions in Europe and the U.S. in May. In June, stock markets
generally remained firm, with prices recovering to 70-80% of pre-crash levels, as the world economy wasdeemed to be over the worst and signs of economic recovery driven by advanced nations started to emerge.

19

Ⅰ. Asset Management Report20

Meanwhile, the Infrastructure Fund Market, like the J-REIT market, fell sharply in March due to anincrease in investor risk aversion in face of the spread of COVID-19, but then rallied strongly for theremainder of the first half, as the market responded positively to the announcement of stimulus packages inJapan and overseas. The Infrastructure Fund Market subsequently fell again on negative reaction to theeconomic impact of COVID-19 and the declaration of a state of emergency. However, since May, themarket has recovered alongside the lifting of the state of emergency and the resumption of economic
activity. Moreover, the Infrastructure Fund Market has recovered to a greater extent than the J-REIT market,
partly because of investors who focus on investments which are less susceptible to the impact of COVID-19.
Looking at the impact of COVID-19 on the power demand-supply environment in Japan, according toMizuho Securities, over the period from April through to June 28, power demand was down 5.3% on
average for nationwide, down 8.8% for Chubu Electric Power, and down 2.9% for Kyushu Electric Power.
Meanwhile, monthly changes in demand by demand area show a similar trend in all regions, with demand
down around 3% year on year in June, improving from a contraction of around 9% in May. Regional data
reveals that Chubu saw the largest decline, followed by Hokuriku and then Chugoku and that three regions
saw an upswing in demand namely Okinawa, Shikoku and Kyushu. Prices on the Japan Electric Power
Exchange (JEPX) were down around 3 yen per kWh on a year on year basis in the April-June quarter and asituation in which monthly average prices by time zone remained far below past levels persisted both ineastern and western regions.
In the environment surrounding renewable energy power generation facilities (stipulated in Article 2,
Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources by Electricity Utilities [Act No. 108 of 2011, including subsequent amendments; hereinafter referred
to as the “Act on Renewal Energy Special Measures”] [excluding those that fall under real estate];hereinafter referred to as “renewable energy power generation facilities”) held by CSIF, the output
curtailment implemented by Kyushu Electric Power Co., Inc. (hereinafter referred to as “Kyushu ElectricPower”), which requires renewable energy operators to temporarily suspend power generation throughphotovoltaic power generation facilities and wind power generation facilities (Note), was resumed for the
first time since May 13, 2019 across Kyushu Mainland from October 13, and was implemented for 8 days
including weekdays in January, 15 days in February, 19 days in March, 22 days in April, 16 days in May and
2 days in June.
Sendai Nuclear Power Plant Unit No.1 and Unit No. 2 suspended operations at their nuclear reactors on
March 16 and May 20 respectively to install anti-terrorism facilities called facilities for dealing with specificsevere accidents, etc. Unit No1 and Unit No. 2 are expected to resume operations at the end of December
2020 and January 2021 respectively.
On June 25,the Act of Partial Revision of the Electricity Business Act and Other Acts for Establishing
Resilient and Sustainable Electricity Supply Systems (hereinafter referred to as the “Act”), which covers
amendments to acts such as the Electricity Business Act, the Act on Special Measures Concerning
Procurement of Electricity from Renewable Energy Sources by Electricity Utilities, and the Act on the Japan
Oil, Gas and Metals National Corporation, Independent Administrative Agency (hereinafter the “JOGMECAct”) was enacted. The parts of the Act concerning partial revision of the Act on Special Measures
Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities are due to go
into effect on April 1, 2022.
The main points of the Partial Revision of the Electricity Business Act are to (i) require electricity
transmission/distribution businesses to jointly formulate action plans on their collaboration in disaster
responses, provide information to municipalities and other related entities in disaster response, and achieve
efforts for systematic renewal of the existing facilities; (ii) add to the services provided by the Organization
for Cross-regional Coordination of Transmission Operators (OCCTO) new services to formulate a Plan on
Development of Cross-Regional Grids; (iii) inaugurate a charging system for wheeling services in which the
METI Minister should regularly approve the upper threshold of business incomes based on the investment
plans and other documents submitted by businesses and the Minister should encourage the businesses tointroduce more efficient costs within the threshold; and (iv) take measures for defining distribution
businesses under laws including small distributed energy resources, in specific service areas.
The main points of the partial revision of the Act on Special Measures Concerning Procurement ofElectricity from Renewable Energy Sources by Electricity Utilities (REA) are (i) to change the title to “Act on
Special Measures Concerning Promotion of Utilization of Electricity from Renewable Energy Sources”(hereinafter the REA after amendment by the Act is referred to as the “Revised Act”); (ii) to establish a Feedin-Premium (FIP) scheme in addition to the existing FIT scheme, a new scheme in which renewable energy
generators are able to receive a certain level of premium based on the market price; (iii) to establish asystem in which part of the expenditures for fortifying electricity grids necessary for expanding the
introduction of renewable energy into businesses, e.g., regional interconnection lines is to be supported
based on the surcharge system across Japan; (iv) to impose obligations on renewable energy generators toestablish an external reserve fund for the expenditures for discarding their facilities; and (v) to introduce asystem for nullifying approvals for projects that do not commence operation within a certain period after
obtaining the FIT/FIP approval to rectify a situation in which grids are not used effectively.
Finally, the main points of the partial revision of the JOGMEC Act are (i) to establish new functions ofJapan Oil, Gas and Metals National Corporation, Independent Administrative Agency (hereinafter referred toas “JOGMEC”) in which, in case of emergencies, JOGMEC will, at the request of the METI Minister basedon the provisions of the Electricity Business Act, procure fuels for electricity generation; and (ii) to enable
JOGMEC to gain additional functions, e.g., equity capital in transshipment or storage terminals for naturalgases and in projects for mining and refining metallic minerals in order to secure diverse procurement
sources of LNG and stable supply of metallic minerals.
Whilst not included in the revisions under the Act, the introduction of so-called power producer-side basecharges is being considered. Power producer-side base charges will be imposed on a per-kW basis toensure that the power producers which use power grids also bear a portion of the fixed costs fortransmission and distribution facilities currently borne by retail electricity business operators on the demandside through wheeling charges. If power producer-side charges are imposed on FIT renewable energy
sources, power producers which sell electricity under the FIT scheme will have no way to transfer costs to athird party during the FIT period and their cashflows will be negatively affected unless adjustment measures
are introduced for projects that have already obtained FIT approval. The System Design Working Group of
the Electricity and Gas Market Surveillance Commission is currently examining the detailed design of thesystem, aiming for introduction in FY2023. Regarding the specific conditions and extent of relief measureswith power producers which sell electricity under the FIT scheme, the Calculation Committee for
Procurement Price, etc. convened on December 27, 2019 discussed cuts to wheeling charges (0.5 yen per
kWh on average) and adjustment measures through surcharges on the assumption that adjustment throughthe transfer of costs is possible for FIT renewable energy sources in the same way as for other energy
sources. However, arguments both for and against were presented and it was decided that the issues
should be summarized and discussed again based on the perspectives of the national burden and theforeseeability of investment and it remains to be seen whether adjustment measures through surcharges
will be introduced. Subsequently, in deliberations in the Diet, Hiroshi Kajiyama, Minister of Economy, Tradeand Industry stated in an answer at a meeting of the Committee on Economy, Trade and Industry at theHouse of Representatives held on May 20, 2020 “it is also true that, depending on the system design,
renewable energy producers whose usage of transmission and distribution facilities is low will face higher
costs. Therefore, in my view, some degree of consideration and creativity is required to ensure that an
excessive burden is not placed on existing FIT power producers.” Then, at a meeting of said Committee
held on May 22, 2020, a supplementary resolution was passed upon approval of the Act stating that “onconsideration of power producer-side base charges, the situation of renewable energy power producers
approved under the feed-in-tariff scheme will be taken into consideration and due consideration will also begiven to ensure that renewable energy power producers are not unjustly disadvantaged compared withother power producers. In addition, at a post-cabinet meeting news conference held on July 3, 2020, METI
Minister Kajiyama stated with respect to the power-producer-side base charges currently being consideredfrom the viewpoint of encouraging efficient adoption of renewable energy through promotion of efficient useof power grids, that he has issued instructions for a review to ensure that the framework is also consistent
with the review of rules surrounding use of trunk power-transmission lines (being considered to accelerate
the adoption of renewable energy whilst reducing existing inefficient thermal power sources).
Under the Revised Act, approved power producers are obliged to set aside funds with the Organization
for Cross-regional Coordination of Transmission Operators (OCCTO) to cover the cost of decommissioning
solar power generation facilities and disposal of waste materials. However, the Revised Act states that the
projects subject to reserve requirements will be designated by METI and the amount to be reserved and thefrequency of withholding of decommissioning costs will be prescribed by a METI ordinance. Indeed, thedetails of a system for ensuring the reserve of decommissioning costs for solar power generation facilities
have been considered on seven occasions since April 2019 at the Advisory Committee for Natural
Resources and Energy, the Energy Efficiency and Conservation Subcommittee, the Subcommittee on New
Energy and the Working Group on Securing Costs for Decommissioning and Disposal of Renewable Power
Generation Facilities and interim findings were published on December 10, 2019. The interim report statesthat (a) the amount to be reserved for projects approved prior to FY2019 for which the procurement price is21

Ⅰ. Asset Management Report
already decided will be set at the level of decommissioning costs assumed upon calculation of the
procurement price by the Calculation Committee for Procurement Price, etc. ; (b) the amount of external
reserves will be the product of multiplying a standard price (on a kWh/yen basis) equivalent to theaforementioned decommissioning costs per unit of power generated adjusted for facility usage and theactual amount of electricity sold under the FIT scheme, and the funds should be reserved on a monthlybasis starting 10 years before the end of the procurement period; and (c) private reserves will only bepermitted if operators prepare and publish business plans, etc., for the implementation of long-term andstable power generation projects, and also meet six other requirements, and the consideration of whether
an operator is eligible to internally reserve decommissioning costs in terms of financial and organizational
integrity, etc. should consider the various business formats adopted, including listed infrastructure funds.
The Revised Act also includes a new section titled “Supply of Renewable Energy through Market
Transactions” and whilst a Feed-In-Premium (“FIP”) system will be put in place under this section, under the
Revised Act, the only projects that will be eligible for the existing FIT scheme will be renewable energy
generators which meet so-called regional use requirements. The FIP scheme will allow renewable energy
generators to sell their electricity through a wholesale power exchange or through over-the-countertransactions whilst receiving an additional premium (defined as a “Subsidy for Supply Promotion” under the
Revised Act) i.e. the difference between the basic tariff (FIP price) (fixed) and a tariff based on market
prices (reference tariff) (fixed for a given period, sliding in the long term). The category to which the FIP
scheme will apply is called the “subsidy category” and is to be designated by the Minister of Economy,
Trade and Industry, respecting the opinion of the Procurement Price Calculation Committee. However, theInterim Report by the Subcommittee on System Reform for Renewable Energy as Main Power Source(hereinafter referred to as the “Subcommittee for Renewable Energy as Main Power Source”) under theStrategic Policy Committee of the Advisory Committee for Natural Resources and Energy published in
February 2020 described the subsidy category subject to the FIP scheme as “energy sources which are
expected to grow into competitive energy sources (competitive energy sources)” and “energy sources
whose generation costs can be steadily reduced and energy sources which can be used as cheap energy
sources” and specifies mega-solar projects and wind projects. Moreover, the discussions and interim reportof said subcommittee suggest that consideration is being given to making the reference price fixed for agiven period but variable in the long term to simultaneously ensure investment incentive and energy
generation behavior conscious of market prices. However, the photovoltaic power generation facilities, etc.
owned by CSIF have already started selling electricity under the FIT scheme and, judging from discussions
in the Subcommittee for Renewable Energy as Main Power Source and answers in Diet deliberations, thesefacilities, etc. are likely to remain eligible under the current FIT scheme and there is unlikely to be anytransition to the FIP system. Therefore, even if eligibility for the FIT scheme is limited as described above,
the feed-in-tariff prices of the photovoltaic power generation facilities owned by CSIF and currently inoperation are unlikely to be affected.
Finally, under the Revised Act, a new system for nullifying FIT/FIP approval of the Minister of Economy,
Trade and Industry for a project that has not started operation within a certain period of time after approval(hereinafter referred to as “expiration of certification”) will be newly introduced from the viewpoint of freeing
up grid capacity saved for projects that have not started operation for years. The period of time for FIP/FIT
approvals to be nullified is not specified in the Revised Act and will be prescribed in a METI ordinance.
However, the photovoltaic power generation facilities, etc. owned by CSIF have already started sellingelectricity under the FIT scheme and even when the Revised Act goes into effect and expiration ofcertification is introduced, certification of the photovoltaic power generation facilities, etc. owned by CSIF will
not be nullified as a result.

c. Management Performance
During the previous fiscal period, CSIF acquired one facility (panel output (Note 3) of 10.8MW andacquisition price (Note 4) of ¥4,570 million) on November 29, 2019 with using borrowings and cash on hand.
As a result, CSIF held a portfolio consisting of a total panel output of 119.8MW, a total acquisition price of¥48,850 million and a total price (Note 5) of ¥51,490 million as of the end of the previous fiscal period.
During the fiscal period under review, there was no acquisition and, as a result, CSIF held a portfolio
consisting of a total panel output of 119.7MW, a total acquisition price of ¥48,850 million and a total price of¥49,580 million as of the end of the fiscal period under review and continued to be the largest operator
among listed infrastructure funds.
(Note 3) “Panel output” shall mean output calculated by multiplying rated output per solar cell module (meaning the
maximum output stated in specifications of solar cell module) used in each solar energy facility by the total
number of panels. The same shall apply hereunder.
( Note 4) “Acquisition price” shall mean the sale and purchase price (excluding outsourcing service fees and otheracquisition expenses related to the acquisition of assets, property-related taxes, urban planning taxes,
consumption taxes and other fees and charges) described in the sale and purchase agreement pertaining to each
asset acquired. It shall be rounded down to the nearest one million yen. The same shall apply hereunder.
(Note 5) “Price” shall mean the intermediate value calculated by CSIF using the appraisal value of each power plant as ofDecember 31, 2019 for the previous fiscal period and as of June 30, 2020 for the fiscal period under review asstated in valuation reports obtained from PricewaterhouseCoopers Sustainability LLC (for S-01 to S-18) or Ernst& Young Transaction Advisory Services Co., Ltd. (for S-19 to S-21). The same shall apply hereunder.

d. Overview of Financing
In the fiscal period under review, CSIF made a contractual repayment at the end of the fiscal period underreview, and the amount of borrowings as of the end of the fiscal period under review came to ¥25,831
million. Consequently, the ratio of interest-bearing debt to total assets (ratio of interest-bearing debt to total
assets at the end of fiscal period) was 54.8%. On June 26, 2020, CSIF filed the shelf registration for its
issuance of investment corporation bonds to Kanto Local Finance Bureau and the comprehensive resolution
on the bonds issuance was approved at its board of directors’ meeting.
(1) Type of bonds : Domestic unsecured investment corporation bonds(2) Amount to be issued : Up to ¥10 billion (the issuance can be divided into several times andtranches)(3) Period of issuance : From July 4, 2020 to July 3, 2022
(4) Amount of each bond : JPY 100 million or more
(5) Use of proceeds : Acquisition of specified assets (defined in article 2, paragraph 1 of Act on
Investment Trusts and Investment Corporation (Act No. 198 in 1958, including
amendments thereafter)), related costs to such acquisition, acquisition of rights
accompanying investments into specified assets, repayment of loans,redemption of investment corporation bonds (including short-term investment
corporation bonds), repayment of security deposits and guarantees, andworking capital such as repair costs (including capital expenditures) related toassets under management.
(6) Collateral and guarantee : No collateral and no guarantee, and no assets are specifically reserved
for the issued bonds.

(Note 1) “Renewable energy generation facilities, etc.” refers collectively to renewable energy generation facilities, andreal estate, real estate leases (includes subleases) and land lease rights (hereinafter referred to as the “site,etc.”) necessary to install maintain and operate renewable energy generation facilities. The same shall apply
hereunder.
(Note 2) “Photovoltaic power generation facilities” refers, among renewable energy power generation facilities, to thosethat generate electricity using sunlight as an energy source, and "wind power generation facilities" refers to thosethat generate power using wind power, among other renewable energy power generation facilities. “Photovoltaic
power generation facilities, etc.” refers collectively to photovoltaic power generation facilities, and real estate, realestate leases (includes subleases) or land lease rights necessary to install maintain and operate photovoltaic
power generation facilities. The same shall apply hereunder.

22

23

Ⅰ. Asset Management Report
e. Overview of Business Performance and Distributions
As a result of the management described above, the business performance in the fiscal period underreview recorded operating revenue of ¥2,331 million, operating income of ¥840 million (mainly due to theimpact of unseasonable weather and curtailment by Kyushu Electric Power), ordinary income of ¥692
million and net income of ¥691 million.
Pursuant to the cash distribution policy set forth in Article 47, Paragraph 1 of its Articles of Incorporation,
CSIF shall distribute an amount in excess of the amount equivalent to 90% of its distributable earnings as
defined in Article 67-15 of the Act on Special Measures Concerning Taxation.
In addition, distributions in excess of earnings are calculated on the premise that such distributions will
generally be made in accordance with the cash distribution policy prescribed in CSIF’s Articles ofIncorporation and the Asset Manager’s asset management guidelines formulated as part of its internal
regulations.
CSIF intends to make cash distributions to its unitholders for each fiscal period from free cash flow
(hereinafter referred to as “FCF”) generated by its renewable energy power generation facilities, in amounts
determined in the following manner. The amount available for distribution shall be calculated by multiplying
FCF, that is net cash flow (hereinafter referred to as “NCF”; CSIF shall incorporate the total amount of NCF
remaining after deducting distributions for the preceding fiscal periods in calculating NCF) to be vested toequity investors after deducting FCF payable to debt investors, by a certain ratio (hereinafter referred to as“payout ratio”; The payout ratio for the 6th fiscal period is 95.0%.) determined by CSIF in light of the amountof NCF for each fiscal period.
At the same time, CSIF intends to maintain a stable level of distributions for the time being. In
determining the payout ratio described above, CSIF will consider the forecast NCF for each fiscal period torealize that level of distributions.
In addition to a cash distribution within the range of profit, CSIF intends to make distributions in excess ofearnings for each fiscal period on a continuous basis in order to realize this policy.
In developing its performance forecast (including any revisions thereof) for each fiscal period, in the casewhere NCF calculated from actual energy output in a fiscal period (hereinafter referred to as “actual NCF”;
CSIF shall incorporate the total amount of NCF remaining after deducting distributions for the preceding
fiscal periods in calculating actual NCF) exceeds NCF projected for the fiscal period (hereinafter referred toas “projected NCF”; CSIF shall incorporate the total amount of NCF remaining after deducting distributions
for the preceding fiscal periods in calculating projected NCF) on the basis of an energy output value
projected by professional specialists (P50) which forms the foundation for the calculation of rents withregard to the renewable energy power generation facilities, CSIF intends to limit the cash distribution to theamount of projected NCF multiplied by the payout ratio for said fiscal period.
On the other hand, in the case where actual NCF is equal to or below projected NCF, CSIF intends tomake a cash distribution for the fiscal period at the amount of actual NCF multiplied by the payout ratio.
Based on the above policy, CSIF determined to make a distribution for the fiscal period under review of¥855,403,000, equivalent to 94.7% of projected NCF for the period (¥902,632,000). This ratio is within the
95% ratio set at the beginning of the period. As a result, distribution in excess of earnings is ¥163,682,520,
after deducting dividends for the period of ¥691,720,480. Dividend per investment unit is ¥3,700 for the
fiscal period under review.

24(3) Summary of Public Offering etc.

Date

Event

Total number of investment
units issued and outstanding(units)Total amount of unitholders'
capital(Note 1) (million yen)

ChangeBalance

ChangeBalance

Remarks

May 18, 2017

Establishment upon
private placement

1,500

1,500

150

150

(Note 2)October 27, 2017

Capital increase by
public offering

177,800

179,300

16,891

17,041(Note 3)

November 28, 2017

Capital increase by
third-party allotment

2,890

182,190274

17,315(Note 4)September 5, 2018

Capital increase by
public offering

46,667

228,857

4,509

21,824(Note 5)September 14, 2018

Cash distribution inexcess of earnings(refund of investment)-

228,857(147)

21,677(Note 6)

October 4, 2018

Capital increase by
third-party allotment

2,333

231,190

225

21,902(Note 7)

March 14, 2019

Cash distribution inexcess of earnings(refund of investment)-

231,190(420)

21,482(Note 8)September 17, 2019

Cash distribution inexcess of earnings(refund of investment)-

231,190(133)

21,349(Note 9)March 17, 2020

Cash distribution inexcess of earnings(refund of investment)－

231,190(309)

21,039(Note 10)(Note 1) The amount of deduction of total amount of unitholders’ capital is deducted.
(Note 2) In the establishment of the CSIF, the investment units were issued at an issue price of ¥100,000 per unit. The party who applied
for subscription of investment units upon the establishment is Canadian Solar Projects K.K.
(Note 3) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at anissue price of ¥100,000 (issue value of ¥95,000) per unit.
(Note 4) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue value of ¥95,000 per unit forthe purpose of appropriation to a part of the funds for acquisition of specified assets or part of repayment of borrowings.
(Note 5) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at anissue price of ¥102,180 (issue value of ¥96,625) per unit.
(Note 6) CSIF decided, at a meeting of its Board of Directors held on August 14, 2018, to pay a cash distribution in excess of earnings(refund of investment) in an amount of ¥808 per unit for the second fiscal period (ended June 30, 2018), and began to pay it from
September 14, 2018.
(Note 7) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue price of ¥96,625 per unit forthe purpose of appropriation to a part of the funds for acquisition of specified assets or a part of the funds for repayment ofborrowings.
(Note 8) CSIF decided, at a meeting of its Board of Directors held on February 15, 2019, to pay a cash distribution in excess of earnings(refund of investment) in an amount of ¥1,817 per unit for the third fiscal period (ended December 31, 2018), and began to pay itfrom March 14, 2019.
(Note 9) CSIF decided, at a meeting of its Board of Directors held on August 13, 2019, to pay a cash distribution in excess of earnings(refund of investment) in an amount of ¥577 per unit for the forth fiscal period (ended June 30, 2019), and began to pay it from
September 17, 2019.
(Note 10) CSIF decided, at a meeting of its Board of Directors held on February 13, 2020, to pay a cash distribution in excess of earnings(refund of investment) in an amount of ¥1,340 per unit for the fifth fiscal period (ended December 31, 2019), and began to pay itfrom March 17, 2020.

25

Ⅰ. Asset Management Report(4) Historical Distributions
Based on the unappropriated earnings of JPY 691mln for the 6th FP, after a rounding down for theamount below JPY 1mln, JPY 691mln is the distribution for profit. Together with JPY 163mln of distribution
in excess of earnings, as the result, JPY 3,700 is the DPU for the period.
l Period
Unappropriated Earnings or Undisposed
Losses (in JPY thousand)
Retained Earnings (in JPY thousand)Total Distribution (in JPY thousand)(DPU, in JPY)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

281,047

412,298

710,506

534,065

691,823

110

86

59

16

103

428,146

832,284

843,843

843,843855,403(2,350)(3,600)(3,650)(3,650)(3,700)Distribution for Profit (in JPY thousand)

280,936412,211

710,446

534,048

691,720(Distribution for Profit per Unit, in JPY)

(1,542)(1,783)(3,073)(2,310)(2,992)Distribution in Excess of Earnings (in JPY
thousand)

147,209

420,072

133,396309,794

163,682(Distribution in Excess of Earnings per
Unit, in JPY)

(808)

(1,817)(577)(1,340)(708)

Distribution from Allowance for Adjustment
for Temporary Difference out of Distribution
in Excess of Earnings (in JPY thousand)

-

-

-

-

−

(Distribution from Allowance for Adjustment for
Temporary Difference per Unit out of Distribution
in Excess of Earnings per Unit, in JPY)

(-)

(-)

(-)

(-)

(-)

Distribution as Redemption of Capital basedon Tax Law (in JPY thousand)

147,209

420,072

133,396309,794

163,682(808)(1,817)(577)(1,340)(708)(Distribution as Redemption of Capital
based on Tax Law, in JPY)

(Note) The fund makes distribution in excess of earnings every FP based on its article 47.2. Based on this policy, JPY 163mln which is
17.9% of the depreciation expenses, JPY 912mln, is to be distributed as the distribution in excess of earnings. As a result, JPY
3,700 is DPU for the 6th FP.

(5) Operational Policy and Agendas in the Futurea. Outlook for the Future Management
Preliminary gross domestic product (GDP) data for October-December 2019 were announced andJapan's GDP shrank an annualized 6.3%, turning negative for the first time in five quarters. The contraction
was the biggest since a 7.4% decline marked in April-June 2014, reflecting the impact of the consumption
tax hike and Typhoon No. 19. It has been pointed out that the Japanese economy and the world economy
may fall into a deep recession due to the domestic and international spread of COVID-19, which emerged in
December last year. In the financial markets, global stocks including Japanese stocks fell dramatically inMarch due to the escalation of COVID-19 cases worldwide. Since then, global stock markets show an
upward trend which varies from country to country, thanks to the measures taken by central banks, such as
cuts to interest rates, quantitative easing and increased asset purchases, as well as moves to resume
economic activity. However, whenever news abouts the COVID-19 pandemic emerges, stock prices tend to
fall sharply, and market volatility has increased.
Meanwhile, according to statistics on COVID-19 global cases released by John Hopkins University in the
U.S., the total number of confirmed cases worldwide had reached around 10.51 million as of July 2, 2020,
with COVID-19 deaths reaching around 510 thousand. Data on daily confirmed cases also shows that
COVID-19 continues to spread. Around six months on from when the COVID-19 outbreak began, WHOwarned on June 29 that “globally the pandemic is actually speeding up and the worst could be yet to come.”
On March 16, 2020, G7 leaders held an emergency video conference call and issued a joint statementsaying “we are mobilizing the full range of instruments, including monetary and fiscal measures, to support
the workers, companies, and sectors most affected,” and further stating that finance ministers and central

26

banks would coordinate to develop monetary measures in order to support economic and financial stabilityand “we will coordinate our efforts to delay the spread of the virus, including through appropriate bordermanagement measures.” Under such conditions, the economies of Japan, the U.S. and Europe are allteetering on the verge of a recession due to the COVID-19 pandemic and it will be important to assess
whether the spread of COVID 19 will be halted in the future, the progress of clinical trials for a vaccine or“silver bullet” and the effectiveness of the full range of fiscal policy instruments being mobilized by national
governments.
Analysis of power supply and demand trends in light of the government’s declaration of a state of
emergency due to COVID-19 and its subsequent lifting, focusing on the impact on power demand mostrecently, shows that since late April the power demand trend (year on year) has been improving, from yearon-year decline of around 9% in May to decline of around 3% in June. However, it will probably take sometime for economic activity to fully return to normal and for power demand to return to previous levels.
With respect to the environment surrounding photovoltaic power generation facilities that are included inrenewable energy power generation facilities, as stated in “(I. Overview of the Fiscal Period under Review)b. Investment Environment” above, the output curtailment that requires renewable energy operators to
temporarily suspend power generation through photovoltaic power generation facilities, etc. was resumed inareas under the jurisdiction of Kyushu Electric Power from October 2019. However, if renewable energy
adoption continues to expand in the future, output curtailment may also be implemented in other regions
besides the Kyushu region such as the Tohoku region and the Chugoku region.
Meanwhile, Kyushu Electric Power shut down the No. 1 and No. 2 reactors at Sendai Nuclear Power
Plant on March 16 and May 20, respectively, to install anti-terrorism facilities known as facilities for dealing
with specific severe accidents, etc. Unit No 1 and Unit No. 2 are expected to resume operations at the endof December 2020 and January 2021 respectively.
The detailed design of the power producer-side base charges to be imposed on renewable energy
generators has apparently not been discussed during the fiscal year under review even by the Calculation
Committee for Procurement Price, etc. since the discussions in December 2019, partly because of the
COVID-19 outbreak. Discussions on the details of adjustment measures are likely to be along the lines of
the answers given by METI Minister Kajiyama and the supplementary resolution at the meeting of theCommittee on Economy, Trade and Industry at the House of Representatives described earlier. Moreover,
the System Design Working Group of the Electricity and Gas Market Surveillance Commission has said thatit aims to introduce power producer-side base charges in FY2023 because, based on the time needed todevelop a system for general electricity transmission and distribution utilities and to review existing over-thecounter transactions between power producers and retailers, it will take around three years to design the
charges.
As for the system of setting aside funds to cover the cost of decommissioning solar power generation
facilities, the projects subject to reserve requirements will be designated by METI and the amount to bereserved and the frequency of withholding of decommissioning costs will be prescribed by a METI
ordinance. With regard to the conditions for permitting operators to internally reserve decommissioning
costs in particular, the interim report concerning decommissioning costs envisages project finance projects,
and discussions concerning eligibility in terms of financial and organizational integrity, etc. are expected to
unfold in such a way that listed infrastructure investment corporations will also be allowed to internallyreserve decommissioning costs.
Under the Revised Act, projects to which the FIP scheme will apply is called the subsidy category and are
to be designated by the Minister of Economy, Trade and Industry, respecting the opinion of the Procurement
Price Calculation Committee and following a public comment period. In preparation for integration ofrenewable energy into the power market, the exceptional system under which renewable energy was
exempted from market transactions under the FIT scheme will be reviewed and there will be a shift towards
a system under which renewable energy is traded on the market like other power sources and most largescale solar power generators and wind power generators, which are eligible for the FIP scheme under the
Revised Act when it goes into effect in April 2022, are likely to start selling electricity into the open market.
In this case, renewable energy generators will mostly likely sell the electricity they have produced based on
an assumed price per kWh by one of the following methods: on the wholesale electricity market themselves;in negotiated bilateral electricity transactions (OTC trading) with electricity retailers; or in the wholesale
electricity market through an aggregator.

27

Ⅰ. Asset Management Reportb. Future Management Policy(i) External Growth Strategy
The Canadian Solar Group (Note 2), which is the Sponsor Group (Note 1) of CSIF, adopts the vertical
integration model that has developed mainly in the photovoltaic power generation market in Europe andAmerica and applies this model in the global market, including Japan. CSIF considers that mutual
cooperation between the Group and CSIF (engaging in investment in and management of photovoltaic
power generation facilities) through the Sponsor Group based on the vertical integration model for theconstruction of the value chain with the aim of creating mutual value should lead to the enhancement ofvalue for unitholders.
Specifically, CSIF intends to increase assets by utilizing the preferential trading negotiation right grantedby the Sponsor Group and acquiring photovoltaic power generation facilities, etc. whose value is high fromthe pipelines of the Sponsor. In addition, CSIF will aim to acquire photovoltaic power generation facilities,
etc. held by persons other than the Sponsor Group by utilizing the Sponsor Group’s networks of brokers andpower producers.
(Note 1) The “Sponsor Group” collectively refer to (i) the Sponsor (Canadian Solar Projects K.K.), (ii) special purpose companies (theymay be hereinafter referred to as “SPCs”), partnerships or other funds with which the Sponsor has entered into the asset
management service agreement, (iii) Canadian Solar O&M Japan K.K. (it may be hereinafter referred to as “CSOM Japan”)
and (iv) special purpose companies, partnerships or other funds in which the Sponsor or its subsidiary own a majority
interest. The same will apply below.
(Note 2) The “Canadian Solar Group” refers to the consolidated corporate group with Canadian Solar Inc. (headquartered in Canada)
at the top to which the Sponsor (Canadian Solar Projects K.K.) belongs.

(ii) Internal Growth Strategy
CSIF will contract out O&M (Note) to CSOM Japan, which is a wholly owned subsidiary of the Sponsor
and provides O&M services in Japan, in principle, for the availability of homogeneous O&M services to theextent that CSIF considers essential. CSIF aims to thereby reduce the operational risk and operating costs
by utilizing the services of CSOM Japan and placing a blanket order, respectively.
By making the most of the strong operation and management abilities realized by utilizing the global
monitoring platform of the Sponsor Group in the early discovery and repair of failures of power generation
facilities, CSIF will aim to reduce the loss of power generation. In addition, CSIF will implement theappropriate repair and facilities replacement of assets under management to maintain and enhance thevalue of assets from the medium- to long-term perspective, thereby securing stable revenue in the medium
to long term.
In addition to the strategies above, as a result of efforts in terms of sustainability, CSIF obtained thefollowing evaluation from the Japan Credit Rating Agency, Ltd. (JCR) regarding the green financeframework.
Date of Evaluation

Evaluating Agency

May 11 2,020

JCR

Overall Green
Greenness (use of proceeds)
Management, Operation and Transparency

1 (F)
g 1 (F)
m 1 (F)(Note) “O&M” is an abbreviation of Operation & Maintenance. The same will apply below.

(iii) Financial Strategy
To secure stable revenue and ensure the growth of the managed assets of CSIF, CSIF will consider
financing by public offering, borrowings and other means in the acquisition of new assets, while watchingchanges in the financing environment closely.
CSIF’s credit ratings and bond ratings are described as below.
CSIF’s Credit Rating and Bond Rating
Rating Subject

Japan Credit Rating
Agency, Ltd. (JCR)

Long-term Issuer Rating

Rating and Investment
Information ,Inc.

2nd FP

Fiscal Period

3rd FP

4th FP

5th FP

6th FP

Jun. 30, 2018 Dec. 31, 2018 Jun. 30, 2019 Dec. 31, 2019 Jun. 30, 2020

The Number of Units Allowed for Issuance

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

Total Number of Units Issued

182,190

231,190

231,190

231,190

231,190

Unitholders’ Capital (net) (Note) (in JPY mln)

17,315

21,902

21,482

21,34921,039The Number of Unitholders

5,753

9,815

11,143

11,40012,005(Note) Deductible amount for unitholders’ capital is deducted from the gross amount of unitholders’ capital.

(2) Major Unitholders List

Major unitholders as of June 30, 2020 are as follows.
Name

The Number of Units Held

Ratio vs Total Number ofUnits Issued (%)

Canadian Solar Project K.K.

33,89514.66

SSBTC CLIENT OMNIBUS ACCOUNTUBS AG LONDON A/C IPB SEGREGATED CLIENT
ACCOUNTThe Bank of Fukuoka, Ltd.

10,731

4.64

THE BANK OF NEW YORK

3,444

1.48

THE BANK OF NEW YORK MELLON

2,712

1.17

THE FUKUHO BANK, LTD.
CITIBANK INTERNATIONAL PLC AS TRUSTEE FOR
STANDARD LIFE WEALTH PHOENIX FUND
Individual

2,440

1.05

2,437

1.05

2,041

0.88

Individual

2,020

0.87

69,788

30.14

Total

6,558

2.83

3,510

1.51

(Note) The ratio is rounded down to two decimal places.

(3) Summary of Executives

a.Executive Director, Supervisory Director and Accounting Auditor

Evaluation

Rating Agency

2. Overview of Fund Corporation(1) Summary of Invested Capital

RatingRating Outlook

Long-term Issuer Rating

A

StableThe 1st Unsecured Investment Corporation Bond

A

-

A-

StablePosition
Executive Director

Supervisory
Director

Name
Tetsuya Nakamura

Takashi Handa

Eriko Ishii
Accounting
AuditorGrant Thornton Taiyo
LLC

Concurrent Post
Representative director of Canadian Solar AssetManagement K.K.
Mazars Carl (Partner)
Mazars FAS K.K. (Representative Director)
Zuken Inc. (Audit and Supervisory board member)
KACHIKAIHATSU CO.LTD. (Outside Director)
Shin Saiwai Law Office (Partner, Attorney at law)
Itochu REIT Management Co., Ltd. (Member ofthe compliance committee)-

Compensation(in JPY thousand)
-

2,400

8,500

(Note) The executive directors and the supervisory director don’t hold the fund’s unit. Although the supervisory directors may be in aposition of executive officer of any corporations other than stated above, there is no conflict of interest related to the fund.

b.The policy on decision of removal / not-to-reappoint of accounting auditor
Decision of removal is made based on Investment Trust Law and not-to-reappoint is made by unitholders’meeting.

(6) Subsequent Event
Not applicable.

2829

Ⅰ. Asset Management Report(4) Asset Manager, Asset Custodian and Administrator(2) Major Assets List

Asset manager, asset custodian and administrator as of June 30, 2020 are as follows.
Delegated Position

The summary of the top 10 assets as of June 30, 2020 is as follows.

Name

Asset Manager

Canadian Solar Asset Management K.K.

Asset Custodian

Sumitomo Mitsui Trust Bank, Ltd.

Administrator (Institutional Operation)

Sumitomo Mitsui Trust Bank, Ltd.

Administrator (Custodian of List of Unitholders)

Sumitomo Mitsui Trust Bank, Ltd.

Administrator (Accounting)

Ernst & Young Tax Co.

Administrator (Administration of Bond)

Mizuho Bank, Ltd.

3. Overview of Assets under Management(1) Composition of Assets and Regional Diversification

Type of asset

Region (Note 1)

Hokkaido/Tohoku
Kanto
Solar energy
Tokaifacility
Chugoku/Shikoku
KyushuSubtotal
Hokkaido/Tohoku
Kanto
Land
Tokai
Chugoku/Shikoku
KyushuSubtotal
Hokkaido/Tohoku
Kanto
Land lease
Tokai
Chugoku/Shikoku
KyushuSubtotal
Hokkaido/Tohoku
Kanto
Solar energy
Tokaifacility etc.
Chugoku/Shikoku
KyushuSubtotal
Solar energy facility etc. total
Saving/other assets
Asset total (2)5th FP

6th FP

As of Dec. 31, 2019

As of Jun. 30, 2020

Total Asset-UnderManagement(AUM)(‘000yen)(Note 2)
1,019,428
2,405,428
5,761,989
10,257,651
21,806,516
41,251,014
48,970648,591
63,309523,905
3,184,875
4,469,653
17,92459,197282,151
3,415
390,450
753,139
1,086,322
3,113,218
6,107,450
10,784,972
25,381,842
46,473,806
46,473,806
3,595,994
50,069,801% of total AUM(Note 3)

2.0
4.8
11.5
20.5
43.6
82.4
0.1
1.3
0.1
1.0
6.4
8.9
0.0
0.1
0.6
0.0
0.8
1.5
2.2
6.2
12.2
21.5
50.7
92.8
92.8
7.2
1,000.0

Total Asset-UnderManagement(AUM)(‘000yen)(Note 2)
998,200
2,349,633
5,644,544
10,030,169
21,327,299
40,349,847
48,970648,591
63,309523,905
3,184,875
4,469,653
17,92459,197282,151
3,415
390,450
753,139
1,065,095
3,057,423
5,990,005
10,557,490
24,902,625
45,572,640
45,572,640
3,559,738
49,132,379(Note 3)

2.0
4.8
11.5
20.4
43.4
82.1
0.1
1.3
0.1
1.1
6.5
9.1
0.0
0.1
0.6
0.0
0.8
1.5
2.2
6.2
12.2
21.5
50.7
92.8
92.8
7.2
100.0

Book Value(in JPY mln)

CS Mashiki-machi Power Plant

828,729

18,486

CS Daisen-cho Power Plant (A) and (B)594,336

9,808

CS Izu-shi Power Plant

240,7494,526

CS Minamishimabara-shi Power Plant

77,006

1,573

CS Minano-machi Power Plant

46,291975

CS Hiji-machi Power Plant

48,721929

CS Ashikita-machi Power Plant

43,829896

CS Isa-shi Dai-san Power Plant

43,467862

CS Kasama-shi Power Plant

50,038846

CS Marumori-machi Power Plant

47,542826

2,020,708

39,727

Total% of total AUM(Note 1) "Hokkaido/Tohoku" refers to Hokkaido, Aomori prefecuture, Iwate prefecture, Akita prefecutre, Miyagi prefecture, Fukushima
prefecture and Yamagata prefecture. "Kanto" refers to Ibaraki prefecture, Tochigi prefecture, Gunma prefecture Tokyo,
Kanagawa prefecture, Saitama prefecture, Chiba prefecture, Yamanashi prefecture, Nagano prefecture and Niigata prefecture.
"Tokai" refers to Shizuoka prefecture, Aichi prefecture, Gifu prefecture, Mie prefecture, Toyama prefecture, Ishikawa prefecture
and Fukui prefecture. "Chugoku/Shikoku" refers to Okayama prefecture, Hiroshima prefecture, Yamaguchi prefecture, Tottori
prefecture, Shimane prefecture, Kagawa prefecture, Kochi prefecture, Tokushima prefecture and Ehime prefecture. "Kyushu"
refers to Fukuoka prefecture, Oita prefecture, Miyazaki prefecture, Kagoshima prefecture, Kumamoto prefecture, Nagasaki
prefecture, Saga prefecture and Okinawa prefecture. The same applies hereinafter.
(Note 2) AUM refers to the numbers in the balance sheet.
(Note 3) The ratios are rounded off to the first decimal place.

30

Rental Revenue Earned byInfrastructure Asset(in JPY thousand)Name of Infrastructure Asset(Note) There are no events which have impacts on any investment decision on infrastructure assets.

(3) Details of Assets

a.Details of Power Generation Facilities(i) Summary

Type of Asset

Beginning Increase Decrease
Balance in the FP in the FP

EndingBalanceAccumulated
Depreciation /Amortization
For this FP

PropertyandEquipment

Intangible
AssetsNet
Ending Abstract
Balance

Structures

1,040

0

-

1,041

85

21

Machinery andEquipment

956

42,726

9-42,736

3,880

878

Tools,
Furnitureand Fixtures

592

-

-

592

55

11

536

38,856 (Note 1)

Land
Constructionin progress

4,469

-

-

4,469

-

-

4,469

-

10

-

10

-

-

10

Total

4,020

911

44,830753

48,82921-

48,850

Leasehold
Rights

753

-

-

753

-

-

Software

3

-

-

3

1

0

1

757

-

-

757

1

0

755

Total

(Note2)(Note1) The increase for the 6th FP is related to the capital expenditure of the power plants on February 28, 2020.
(Note2)The increases for the 6th FP are related to the disaster recovery constructions for CS Kannami-cho PV in 4 mil yen and CS
Tsuyama-shi PV in 6 mil yen.Further construction plan for CS Kannami-cho PV is not determined.

31

Ⅰ. Asset Management Report(ii) Details of Power Generation Facilities
Asset #

Category

Project Name

Location

Site Area(m2) (Note 1)

S-01

Solar Plant
etc.

CS Shibushishi Power Plant

Shibushi-shi,
Kagoshima

19,861

S-02

Solar Plant
etc.

CS Isa-shi
Power Plant

Isa-shi, Kagoshima

S-03

Solar Plant
etc.

CS Kasamashi Power Plant

Kasama-shi, Ibaraki

S-04

Solar Plant
etc.

CS Isa-shi Daini Power Plant

Isa-shi, Kagoshima

S-05

Solar Plant
etc.

CS Yusui-cho
Power Plant

S-06

Solar Plant
etc.

S-07

Solar Plant
etc.

Kasama-shi, Ibaraki

Ashikita-gun,
Kumamoto(Note 3)

FIT Term End(Note 4)40

February 26,
2013

September
16, 2034

22,22340

February 26,
2013

June 8, 2035

42,666(Note 5)40

January 25,
2013

June 25,2035

31,81836

October 2,
2013

June 28,2035

Aira-gun, Kagoshima

25,27436

March 14,2014

August 20,
2035

Isa-shi, Kagoshima

40,73640

February 26,
2013

September
15, 2035

40

January 25,
2013

September23, 2035

S-08

Solar Plant
etc.

CS Isa-shi Daisan Power Plant
CS Kasamashi Dai-niPower Plant
CS Hiji-machi
Power Plant

S-09

Solar Plant
etc.

CS Ashikita-machi
Power Plant

Solar Plant
etc.

CS
Minamishimabarashi Power Plant(East) / CS
Minamishimabarashi Power Plant(West)

Minamishimabara-shi,
Nagasaki

S-10

PPA Purchase Price(yen/kwh) (Note 2)

Certification
Date

Hayami-gun, Oita

53,27530,24645,74056,06636

July 16, 2013

October 12,
2035

40

February 26,
2013

December
10, 2035

40

February 26,
2013 (East)
February 26,
2013 (West)

December24, 2035(East)
January 28,2036 (West)

S-11

Solar Plant
etc.

CS Minano-machi
Power Plant

Chichibu-gun,
Saitama

44,90432

December11, 2014

December 6,
2036

S-12

Solar Plant
etc.

CS Kannamicho Power Plant

Tagata-gun, Shizuoka

41,33936

March 31,2014

March 2,
2037

S-13

Solar Plant
etc.

CS Mashiki-machi
Power Plant

Kamimashiki-gun,
Kumamoto

638,552(Note 6)36

October 24,
2013

June 1, 2037

S-14

Solar Plant
etc.

CS Koriyamashi Power Plan

Koriyama-shi,
Fukushima

30,376(Note 5)32

February 27,
2015

September
15, 2036

S-15

Solar Plant
etc.

CS Tsuyamashi Power Plant

Tsuyama-shi,
Okayama

31,05932

September
26, 2014

June 29,
2037

S-16

Solar Plant
etc.

CS Ena-shi
Power Plant

Aza Ochise, Kusumi,
Osashima-cho, Ena-shi, Gifu

37,37332

February 24,
2015

September
12, 2037

CS Daisen-choPower Plant(A) and (B)Aza Magoese,
Toyofusa, Daisencho, Saihaku-gun,Tottori (A)Aza Kamikawara,
Toyofusa, Daisencho, Saihaku-gun,Tottori (B)

S-17

Solar Plant
etc.

452,760(Note 7)40

February 22,2013 (A)February 28,
2013 (B)

August 9,2037

PPA company

Project name

Certified Operator

S-01

CS Shibushishi Power Plant

Tida Power 01
G.K

Kyushu ElectricPower Co., Inc

540

525

S-02

CS Isa-shi
Power Plant

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc

372

345

S-03

CS Kasamashi Power Plant

Tida Power01
G.K.

TEPCO Energy
Partner, Incorporated

907

995

S-04

CS Isa-shi Daini Power Plant

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc

778

717

S-05

CS Yusui-cho
Power Plant

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc

670

614

S-06

CS Isa-shi Daisan Power Plant

Tida Power01
G.K..

Kyushu ElectricPower Co., Inc

949

881

S-07

CS Kasama-shi
Dai-ni Power Plant

Tida Power01
G.K..

TEPCO Energy
Partner, Incorporated

850

849

S-08

CS Hiji-machi
Power Plant

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc

1,029

947

S-09

CS Ashikita-machi
Power Plant

Tida Power01
G.K..

Kyushu ElectricPower Co., Inc

989

929

S-10

CS Minamishimabarashi Power Plant(East) / CS
Minamishimabara-shi
Power Plant (West)

Tida Power 01
G.K.

Kyushu ElectricPower Co., Inc

1,733

1,684

S-11

CS Minano-machi
Power Plant

Tida Power01
G.K.

TEPCO Energy
Partner, Incorporated

1,018

1,087

S-12

CS Kannami-cho
Power Plant

Tida Power01
G.K..

TEPCO Energy
Partner, Incorporated

514

546

S-13

CS Mashiki-machi
Power Plan

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc.

20,084

21,071

S-14

CS Koriyamashi Power Plan

Tida Power01
G.K..

Tohoku ElectricPower Co., Inc.

246

247

S-15

CS Tsuyamashi Power Plan

Tida Power01
G.K..

The Chugoku ElectricPower Co., Inc.

746

755

S-16

CS Ena-shi
Power Plant

Tida Power01
G.K..

The Chubu ElectricPower Co., Inc.

757

807

S-17

CS Daisen-cho Power
Plant (A) and (B)Tida Power01
G.K..

The Chugoku ElectricPower Co., Inc.

10,447

10,442

S-18

CS Takayamashi Power Plant

Tida Power01
G.K.

The Chubu ElectricPower Co., Inc.

326

327

Tida Power01
G.K.

TEPCO Energy
Partner, Incorporated

470

462

(Note 1)

Solar Plant
etc.

CS Takayamashi Power Plant

Shingumachi,
Takayama-shi, Gifu

16,278(Note 5)32

January 30,
2015

October 9,
2037

S-19

Solar Plant
etc.

CS Misato-machi
Power Plant

Misato-machi,
Kodama-gun, Saitama

25,31532

January 6,
2015

March 26,
2037

S-19

CS Misato-machi
Power Plant

S-20

Solar Plant
etc.

CS Marumorimachi Power Plant

Marumori-machi, Igugun, Miyagi

65,306(Note 8)36

February 28,
2014

July 12, 2038

S-20

Tida Power01
G.K.

Tohoku ElectricPower Co., Inc.

S-21

Solar Plant
etc.

CS Izu-shi
Power Plant

Ono Aza Okubo, Izushi, Shizuoka

36

March 31,2014

November29, 2038

CS Marumorimachi Power
Plant

S-21

CS Izu-shi
Power Plant

Tida Power01
G.K.

TEPCO Power Grid,
Incorporated

337,160

Acquisition Fiscal periodPriceend valuation(million yen) (million yen)

Asset #

S-18

(Note 1) The numbers for “Site Area” are not equal to the real situation but based on the ground register.
(Note 2) “PPA Purchase Price” are the FIT price for each power plant (excluding consumption tax amount).
(Note 3) “Certification Date” denotes the date each power plant is certified under the article 6.1 of Revision Renewable Energy Special
Measures Law. Each power plant is deemed being certified on April 1, 2017 based on the article 9.3 of Revision Renewable
Energy Special Measures Law.
(Note 4) “FIT Term End” denotes the date 20-year FIT term ends for each power plant.
(Note 5) The number for the site area is only for the power plant’s land ownership rights and doesn’t include easement.

32(Note 6) The number for the site area is only for the power plant’s and self-employed line’s land ownership rights and doesn’t include
easement.
(Note 7) The number for the site area is only for the power plant’s and self-employed line’s surface right and doesn’t include leasehold
right and easement.
(Note 8) The number for the site area is only for the power plant’s, self-employed line’s and access road’s surface right and doesn’t
include easement.

Total(Note 2)

Appraisal value of Fiscal period
solar plants
end book(million yen)(Note 3) value (million
yen)(upper:solar energy(Note 4)
facility) (lower:land)
383
142
323

601
339

21
754
241
678

846

38
582
32
820

607

60
807
41
908

765

38
889
40

704

862

929
896

1,603
1,573
81

850

825

4,569

4,528

48,85049,588

821
266
502

975
471

43
17,601
3,470
195

18,486

51
618
137
770

748

37
10,069
373
266

9,808

61
341
121
807
17
4,283
245
44,027
5,560

238

673

318
470
826
4,526
45,572(Note 1) Acquisition price is based on acquisition price as described in the purchase agreements (excluding acquisition expenses related
to the payment of outsourcing service fees, property-related taxes, taxes on depreciable assets, urban planning taxes,
consumption taxes and other fees).

33

Ⅰ. Asset Management Report(Note 2) For S-01 to S-18, the fiscal period end valuation is the median amount that the Investment Corporation calculated in accordancewith Article 41, paragraph 1 of the CSIF's Articles of Incorporation based on the range of valuation provided to us byPricewaterhouseCoopers Sustainability LLC and, for S-19 to S-21, the fiscal period end valuation is based on the medianamount provided to us by Ernst & Young Transaction Advisory Services Co., Ltd. in its project valuation report.
(Note 3) On the upper row of the appraisal value of solar plants, an assumed appraisal value of solar energy projects that is obtained bydeducting the real estate appraisal value calculated by Daiwa Real Estate Appraisal Co., Ltd. from the appraised value at theend of the period in (Note 2) above is stated, and on the lower row, an amount stated in the real estate appraisal report preparedby Daiwa Real Estate Appraisal Co., Ltd. is stated. Real estate includes its superficies right.
(Note 4) Fiscal period end book value is the book value of solar energy as of June 30, 2019.
(Note 5) Former certified operator, LOHAS CLEAN ENERGIES WORLD K.K. was merged into Tida Powe01 G.K. as of January 15, 2020.

(iii) Operational Results of Each Power Generation Facilities (in JPY thousand)S-01 CS Shibushi-shi Power Plant
Accounting Item

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

24,112

19,23518,727

19,137

18,632

12,197－36,3107,474－
26,7106,605－
25,332

6,288－
25,426

3,336－
21,968

2,665
2,665
－
2,573
2,376
－
－
197
－
－
12,608593
11,95955
17,847
18,463

2,664
2,664
－
1,912
1,745
－
－
166
－
－
9,456
445
8,969
41
14,032
12,677

2,254
2,254
－
1,907
1,701
－
－
205
－
－
9,459
447
8,970
41
13,621
11,711

2,254
2,254
－
2,296
2,073
－
－
223
－
－
9,472
457
8,973
41
14,023
11,402

1,917
1,917
－
2,273
2,014
－
－
258
－
－
9,472
457
8,973
41
13,663
8,304

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

S-02 CS Isa-shi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

18,1909,608－
27,79914,244
7,166－
21,411

14,313
5,648－
19,961

14,171
5,230－
19,402

14,2403,522－
17,763

1,349
1,349
－
3,034
1,808
－
－
170
1,055
－
10,445341
10,07923
14,82912,969

1,346
1,346
－
2,248
1,328
－
－
141
778
－
7,833
256
7,559
17
11,428
9,982

1,699
1,699
－
2,261
1,299
－
－
168
794
－
7,835
256
7,561
17
11,796
8,165

1,698
1,698
－
2,635
1,655
－
－
182
797
－
7,837
256
7,563
17
12,170
7,232

1,452
1,452
－
2,617
1,610
－
－
209
797
－
7,837
256
7,563
17
11,907
5,855(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

34

35

Ⅰ. Asset Management Report
S-03 CS Kasama-shi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-05 CS Yusui-cho Power Plant
2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

43,712
17,154－60,86629,54911,846
110
41,50635,327
17,266
202
52,79629,39910,669173
40,24235,147
14,79594
50,038

3,050
3,050
－
4,665
4,296
－
－
368
－
－
19,283433
18,80545
26,99933,866

3,050
3,050
－
4,359
3,033
1,025
－
299
－
－
14,462324
14,10433
21,872
19,634

3,791
3,791
－
3,277
2,931
－
－
346
－
－
14,462324
14,10433
21,532
31,264

3,792
3,792
－
3,255
2,879
－
－
375
－
－
14,462324
14,10433
21,51018,731

3,283
3,283
－
3,322
2,887
－
－
434
－
－
14,462324
14,10433
21,06828,970S-04 CS Isa-shi Dai-ni Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income(Note)
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

37,574
16,481－54,056

29,412
11,590－41,00329,51010,641－
40,152

29,263
9,522－
38,78529,3605,875－
35,235

2,962
2,962
－
6,360
3,909
－
－
326
2,124
－
21,926408
21,46355
31,24922,807

2,964
2,964
－
5,150
2,871
418
－
269
1,590
－
16,445306
16,09741
24,55916,443

3,768
3,768
－
5,236
2,866
458
－
320
1,590
－
16,449306
16,101
41
25,454
14,697

3,768
3,768
－
4,695
2,756
－
－
347
1,590
－
16,457306
16,10941
24,92013,864

3,232
3,232
－
4,653
2,659
－
－
402
1,590
－
16,457306
16,10941
24,343
10,892(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

33,203
11,831－45,034

23,595
10,410－34,006

26,827
5,533－
32,361

23,476
8,425－
31,901

26,691
3,444－
30,135

2,635
2,635
－
5,389
3,396
－
－
305
1,687
－
18,972761
17,897313
26,997
18,036

2,634
2,634
－
4,010
2,494
－
－
252
1,263
－
14,229571
13,423
235
20,873
13,132

3,277
3,277
－
3,987
2,425
－
－
298
1,263
－
14,242582
13,425
235
21,507
10,853

3,274
3,274
－
4,438
2,850
－
－
324
1,263
－
14,260595
13,429235
21,972
9,928

2,805
2,805
－
4,508
2,869
－
－
375
1,263
－
14,263598
13,429235
21,577
8,558(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

S-06 CS Isa-shi Dai-san Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

45,112
19,799－64,91235,02815,056－50,08535,695
12,165－47,86034,851
11,728－46,57935,514
7,953－
43,467

3,525
3,525
－
7,387
4,319
－
－
348
2,719
－
26,377386
25,922
68
37,29027,621

3,526
3,526
－
5,500
3,172
－
－
290
2,036
－
19,783290
19,44151
28,80921,275

4,494
4,494
－
5,551
3,080
84
－
349
2,036
－
19,784290
19,44351
29,83018,030

4,494
4,494
－
5,459
3,042
－
－
379
2,036
－
19,799290
19,45851
29,753
16,826

3,876
3,876
－
6,385
3,907
－
－
441
2,036
－
19,861
290
19,52051
30,123
13,343(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

3637

Ⅰ. Asset Management Report
S-07 CS Kasama-shi Dai-ni Power Plant

S-09 CS Ashikita-machiPower Plant
2nd FP

Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

43,063
16,959－60,02329,161
12,354－41,51634,897
16,386－
51,28429,013
9,415－
38,42934,72014,507－49,227

3,371
3,371
－
7,526
4,084
－
－
346
3,095
－
23,453
310
23,08557
34,35025,672

3,370
3,370
－
6,000
3,318
－
－
285
2,396
－
17,604247
17,31442
26,975
14,541

4,304
4,304
－
6,964
3,532
700
－
335
2,396
－
17,604247
17,31442
28,873
22,410

4,304
4,304
－
5,606
2,847
－
－
362
2,396
－
17,604247
17,31442
27,514
10,914

3,689
3,689
－
5,695
2,881
－
－
417
2,395
－
17,604247
17,31442
26,98822,238

S-08 CS Hiji-machi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

48,091
26,458－74,54937,673
17,650－55,32337,94915,805－53,75537,482
10,943－
48,42637,757
10,964－
48,721

4,113
4,113
－
8,278
5,064
－
－
442
2,771
－
29,4191,113
28,153
152
41,81032,738

4,112
4,112
－
5,682
3,733
75
－
361
1,512
－
22,064835
21,114114
31,85823,464

5,167
5,167
－
5,622
3,562
－
－
419
1,639
－
22,066835
21,116114
32,85520,899

5,166
5,166
－
5,547
3,578
－
－
456
1,512
－
22,070835
21,120114
32,783
15,643

4,427
4,427
－
5,524
3,391
－
－
530
1,602
－
22,070835
21,120114
32,021
16,700(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

44,791
21,114－65,90637,301
15,543－
52,84535,753
12,815－48,56837,113
11,371－
48,48435,571
8,257－
43,829

3,973
3,973
－
7,205
4,557
－
－
402
2,245
－
26,937
1,921
24,679336
38,11627,789

3,972
3,972
－
5,431
3,347
66
－
336
1,681
－
20,203
1,441
18,509252
29,60623,238

4,879
4,879
－
5,337
3,249
－
－
406
1,681
－
20,207
1,441
18,514252
30,424
18,144

4,876
4,876
－
5,880
3,758
－
－
440
1,681
－
20,216
1,441
18,523
252
30,973
17,511

4,167
4,167
－
6,154
3,964
－
－
509
1,681
－
20,216
1,441
18,523
252
30,53913,290(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

S-10 CS Minamishimabara-shi Power Plant (East and West)
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

80,84742,444－
123,291

65,85430,406－
96,26063,48827,370－90,85965,521
20,782－86,30363,166
13,840－77,006

6,747
6,747
－
13,894
7,627
－
－
571
5,696
－
46,965985
45,647331
67,60755,683

6,744
6,744
－
10,331
5,601
－
－
469
4,260
－
35,224739
34,235248
52,29943,960

8,533
8,533
－
11,314
6,502
－
－
551
4,260
－
35,224739
34,235248
55,07135,787

8,530
8,530
－
10,188
5,317
－
－
611
4,260
－
35,224739
34,235248
53,94332,360

7,296
7,296
－
10,118
5,127
－
－
731
4,260
－
35,224739
34,235248
52,63924,367(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

38

39

Ⅰ. Asset Management Report
S-11 CS Minano-machi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-13 CS Mashiki-machi Power Plant
2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

45,753
17,427
6
63,18730,8439,769
140,61435,51915,005－50,52530,6882,722－
33,41035,34010,950－46,291

4,907
4,907
－
5,128
4,753
－
－
374
－
－
20,8191,021
19,798－30,85532,331

4,904
4,904
－
4,143
3,491
330
－
321
－
－
15,798766
15,031－
24,845
15,769

4,412
4,412
－
3,953
3,372
178
－
402
－
－
16,132766
15,366－24,49926,025

4,410
4,410
－
3,750
3,313
－
－
436
－
－
16,132766
15,366－24,293
9,117

3,816
3,816
－
3,700
3,195
－
－
504
－
－
16,132766
15,366－
23,64922,642

S-12 CS Kannami-cho Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

40

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

24,748
11,233－35,982

18,5505,241－
23,791

19,6449,060－
28,70518,456
5,304－
23,76019,545
7,872－
27,418

2,772
2,772
－
4,539
2,594
－
－
119
1,826
－
12,837461
12,302
73
20,14915,832

2,770
2,770
－
3,978
1,905
－
－
125
1,947
－
9,639
357
9,226
55
16,388
7,402

2,398
2,398
－
3,735
1,840
42
－
198
1,653
－
9,662
380
9,226
55
15,796
12,908

2,398
2,398
－
3,976
2,108
－
－
213
1,654
－
9,662
380
9,226
55
16,036
7,724

2,069
2,069
－
3,641
1,743
－
－
243
1,654
－
9,662
380
9,226
55
15,373
12,045

Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

852,054
412,102－
1,264,157

691,759
254,45012
946,222664,560
247,774－
912,334

688,283
232,965－
921,249

661,218
167,511－
828,729

112,207112,207－
89,59081,898
－
－
7,659
32
－
459,030
4,625
443,887
10,518660,827
603,329

112,206
112,206－
67,63861,168
－
－
6,397
71
－
344,335
3,531
332,915
7,888
524,180
422,042

96,65096,650－68,91861,168
－
－
7,703
45
－
344,340
3,531
332,915
7,893
509,908
402,426

96,65096,650－69,02660,428
176
－
8,356
65
－
344,350
3,531
332,916
7,902
510,027
411,22183,464
83,464－72,071
62,244
98
－
9,662
65
－
344,5123,531
333,078
7,902
500,048
328,680(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

S-14 CS Koriyama-shi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

7,267
4,627
－
11,895

7,619
3,978
2
11,600

8,085
5,215
－
13,300

7,580
3,317
2
10,901

8,044
4,396
－
12,441

－
－
－
768
768
－
－
－
－
－
3,492
272
3,220
－
4,261
7,633

－
－
－
1,081
922
－
－
158
－
－
4,191
327
3,864
－
5,272
6,328

1,298
1,298
－
990
883
－
－
106
－
－
4,191
327
3,864
－
6,479
6,820

1,296
1,296
－
1,590
876
600
－
113
－
－
4,191
327
3,864
－
7,077
3,823

1,171
1,171
－
965
837
－
－
128
－
－
4,191
327
3,864
－
6,328
6,113

41

Ⅰ. Asset Management Report
S-15 CS Tsuyama-shi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-17 CS Daisen-cho Power Plant (A and B)
2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

21,83013,233－35,064

22,253
10,447－32,701

24,444
12,668－37,11322,141
12,485－34,627

24,321
12,548－36,869

－
－
－
2,371
2,371
－
－
－
－
－
10,640290
10,095254
13,01122,052

－
－
－
3,156
2,846
－
－
310
－
－
12,768348
12,114304
15,924
16,776

3,901
3,901
－
10,045
2,727
7,096
－
221
－
－
12,946365
12,276304
26,893
10,219

3,898
3,898
－
2,982
2,704
－
－
278
－
－
12,949376
12,267304
19,82914,797

3,469
3,469
－
3,482
3,206
－
－
275
－
－
12,914376
12,232
304
19,86617,003S-16 CS Ena-shi Power Plant

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

42

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

－
－
－
－

211,123
29,966－
241,089

327,901
247,066－
574,967

385,926
121,853－
507,780

326,253
268,083－
594,336

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
34,45023,490
140
－
2,511
8,308
－
136,406
3,088
132,820497
170,857
70,232

59,954
59,954－54,49836,805－－
4,622
13,070－214,526
4,863
208,879782
328,979
245,988

59,954
59,954－53,88536,009－－5,019
12,856－
214,565
4,902
208,879
782
328,404
179,375

51,761
51,761－
54,60436,036－－
5,812
12,755－
214,567
4,905
208,879
782
320,933
273,403

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

－
－
－
－

4,937
1,841
－
6,779

11,075
5,290－
16,365

9,720
4,625
－
14,346

11,0194,989－
16,009

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
891
828
－
－
62
－
－
3,494
218
3,267
8
4,386
2,393

2,007
2,007
－
1,411
1,296
－
－
114
－
－
5,496
344
5,139
12
8,915
7,450

2,006
2,006
－
1,393
1,269
－
－
123
－
－
5,496
344
5,139
12
8,895
5,450

1,762
1,762
－
1,399
1,256
－
－
142
－
－
5,496
344
5,139
12
8,657
7,351

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-18 CS Takayama-shi Power Plant
2nd FP

Accounting Item

Accounting Item

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

－
－
－
－

14,524
7,383－
21,90826,39815,982－42,381

25,611
12,203－37,81526,266
14,224－40,490

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
2,561
1,827
－
－
138
595
－
9,226
374
8,790
61
11,788
10,120

4,344
4,344
－
4,306
3,115
－
－
252
938
－
14,510589
13,823
97
23,161
19,219

4,344
4,344
－
4,007
2,801
－
－
273
933
－
14,510589
13,823
97
22,862
14,953

3,776
3,776
－
4,288
2,772
－
－
314
1,202
－
14,510589
13,823
97
22,576
17,914

Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

43

Ⅰ. Asset Management Report
S-19 CS Misato-machi Power Plant
Accounting Item

S-21 CS Izu-shi Power Plant
2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

－
－
－
－

－
－
－
－

10,733
6,273－
17,006

13,005
5,628－
18,63415,3007,717－
23,017

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
877
877
－
－
－
－
－
5,056
117
4,896
41
5,934
11,072

－
－
－
2,230
1,315
645
－
269
－
－
7,594
176
7,345
72
9,824
8,809

2,646
2,646
－
1,506
1,315
－
－
190
－
－
7,594
176
7,345
72
11,747
11,270Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-20 CS Marumori-machi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

－
－
－
－

－
－
－
－

17,98911,768－29,75828,3306,694－
35,02532,391
15,151－47,542

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
3,730
1,376
－
－
－
2,354
－
8,847
261
8,464
121
12,57817,179

－
－
－
8,421
2,666
346
－
782
4,625
－
17,036503
16,297234
25,457
9,567

5,430
5,430
－
8,059
2,797
－
－
526
4,735
－
17,036503
16,297234
30,526
17,016

Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

2nd FP

3rd FP

4th FP

5th FP

6th FP

Fr. Oct. 1, 2017
To Jun. 30, 2018

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

－
－
－
－

－
－
－
－

－
－
－
－

17,832
8,750－
26,582

155,81384,936－
240,749

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
3,786
2,270
－
－
－
1,516
－
15,742732
14,755254
19,528
7,053

28,252
28,252－
21,398
12,770
－
－
－
8,628
－
87,776
4,082
82,271
1,421
137,427
103,322b.Details of Investment in Operating Rights for Public Facilities
Not applicable.
c.Details of Investment in Real Estate
The real estate that CSIF holds are to be provided for the use of renewable energy power generation
facilities and described in “(3) Details of Assets / a. Details of Power Generation Facilities / (i) Summary”
above.
d.Details of Investment in Securities
Not applicable.

(4) Other Assets
Assets related to the power plants are described in “(3) Details of Assets / a. Details of Power Generation
Facilities / (iii) Operational Results of Each Power Generation Facilities (in JPY thousand)” and other assets
as of June 30, 2020 are as follows.
Category
Transaction Outsideof Market

TypeInterest Rate Swap
Total

Contracted Amount(Note 1)

Over 1 year
(Note 1)

Fair Value(Note 2)

20,811,569

19,568,757-

20,811,569

19,568,757-(Note 1) The contracted amount is based on notional amount.
(Note 2) As the transaction is booked based on special treatment under the financial instrument accounting standard, the fair value isomitted.

(5) Location of Assets by Country
There is no asset in the countries outside Japan as of June 30, 2020.

44

45

Ⅰ. Asset Management Report(2) Summary of Debts

4. Capital Expenditures for Assets under Management(1) Scheduled Capital Expenditures

Category

The following table shows capital expenditures for renewable energy power generation facilities, etc.
owned by CSIF during the following fiscal periods. The amount includes the portion which is to be treated as
the expense during the period.

LenderProjected amount(million yen)

Name ofinfrastructure
assets, etc.

Location

CS Tsuyamashi Power
Plant

Tusyamashi
OkayamaDisaster recovery
construction

CS Marumori-machiPower Plant

Marumorimachi
MIyagiAccess roadrestoration
work/repair workinside the power
plant

CS Machiki-machiPower Plant

Mashikimachi
Kumamoto

PurposeBuilding works forcurtailment control

Projected period

TotalamountFrom April 2020
To July 202021

From July 2020
To November 202018

From February 2020
To September 2020

32

Amountpaid during
5th FP

Amountpaid byprior FP

6

-

9

9

Longterm

The following table shows capital expenditures for renewable energy power generation facilities, etc.
owned by CSIF during the fiscal period under review.

2,079

1,337

1,299

Sumitomo Mitsui
Banking Corporation

1,337

1,299

MUFG Bank, Ltd.

891

866

Resona Bank, Ltd.

1,605

1,559

891

866

Name of infrastructure
assets, etc. (Location)

Purpose

Implementation period

CS Mashiki-machi Power Plant(Kami machiki-gun,Kumamoto)

Modification works forcommunication equipment
at interconnection point

From February 14, 2020
To September 30, 2020

Amount paid
(thousand yen)

Other plants

999
Total

10,699

1,559

1,605

1,559

The Oita Bank, Ltd.

802

779

The Shonai Bank, Ltd.

802

779

The Mie Bank, Ltd.

178

173

The Tochigi Bank, Ltd.

802

779

Shinsei Bank, Ltd.

1,603

1,560

Sumitomo Mitsui
Banking
Corporation

1,603

1,560

1,851

1,802

(3) Cash Reserved for Long-term Maintenance Plan
Not applicable.

5. Summary of Expenses and Debts

925

901

948

923

The Hiroshima
Bank, Ltd.

474

461

661

643

Shinsei Bank, Ltd.

1,000

972

MUFG Bank, Ltd.

700

680

The Ashikaga
Bank, Ltd.

500

486

1,000

972

Nanto Bank, Ltd.

500

486

The Hiroshima
Bank, Ltd.

800

778

MUFG Bank, Ltd.

(1) Summary of Expenses

Fiscal Period
Asset Management Fee
Administrative Service Fee
Directors’ Compensation
Other Operating Expenses
Total

46

5th FP

6th FP

From July 1, 2019
To December 31, 2019

From January 1, 2020
To June 30, 2020

52,213
18,5422,400
56,184
129,340

59,407
19,4022,400
47,705
128,915

September
6, 2018

The Ashikaga
Bank, Ltd.

The Shonai Bank, Ltd.

Total

Repayment
Date

Repay
ment
MethodUse

Abstract

October 31,
2027

Partialamortization(Note 3)

Unsecuredand noguarantee(Note 2)September 6,
2028

Partialamortization(Note 3)

Unsecuredand noguarantee

March 29,2019

0.57636

March 29, 2022

Partialamortization(Note 3)

Unsecuredand noguarantee

November29, 2019

0.52085

November 29,
2021

Partialamortization(Note 3)

Unsecuredand noguarantee

0.26738

Earlier date ofNovember 29,
2021 or interest
payment date
immediately
after refund of
consumption tax

November29, 2019(Note 3)

Unsecuredand noguarantee

0.84500(Note 2)

1,605

Shinsei Bank, Ltd.

9,700

October 31,
2017

Nanto Bank, Ltd.

Nanto Bank, Ltd.

Average
Interest
Rate (%)(Note 1)

2,140

MUFG Bank, Ltd.

(2) Capital Expenditures during the PeriodEndingBalanceMizuho Bank, Ltd.

The Hiroshima
Bank, Ltd.

-Beginning
Balance

Shinsei Bank, Ltd.

Orix Bank
Corporation

6

Borrowing
Date

300

－

26,87325,831

1.04200

Bullet(Note4)(Note 1) Average interest rate are based on actual number of days and weighted average. The number are rounded down.
(Note 2) For the debts with interest rate swap for hedging interest rate risk, the average interest rate incorporates the effect of suchinterest rate swap.
(Note 3) The uses of the debt proceeds are the purchase of power plants.
(Note 4) The balance had been repaid on April 30, 2020 by refund of consumption tax.

47

Ⅰ. Asset Management Report(3) Investment Corporation Bond
Name of Investment
Corporation Bond

Issue
date

Canadian Solar
Infrastructure
Investment
Corporation / The 1st
Unsecured Bond

November
6, 2019

Total

Beginningbalance

7. Summary of Accounts(million yen)EndingBalance(million yen)Interest
rate

1,100

1,100

0.71

1,100

(%)

Redemption
date

Redemption
methodPurpose

Abstract

November
6, 2024

Bullet(Note)

Unsecuredand noguarantee

1,100(Note) The purpose is repayment of the debt whose maturity is approaching, payment of future acquisition cost of specified assets,
payment of repair cost and capital expenditure, and working capital.

(4) Short-term Investment Corporation Bond

(1) Summary of Assets, Liabilities, Capital and Income/Loss

Please see the balance sheet, statement of income, statement of changes in unitholders’ equity, note andstatement of cash distribution.

(2) Change in Calculation Method of Depreciation
Not applicable.

(3) Change in Valuation Method of Infrastructure Assets and Real Estate
Not applicable.

(4) Company Setting Investment Trust Beneficial Securities
Not applicable.

Not applicable.

(5) Unit Acquisition Right
Not applicable.

6. Sales and Purchases during the Period(1) Summary for Sales and Purchases of Infrastructure Assets, Infrastructure-related
Assets, Real Estate and Asset-backed Securities
Not applicable.

(2) Summary for Sales and Purchases of Other Assets

8. Other(1) Notificationa.Unitholders’ Meeting
No unitholders’ meeting was held during the FP.
b.Board of Executives Meeting
Not applicable.

(2) Treatment of Amount and Ratio with Fractional Point

Unless otherwise described, the amounts are rounded down and the ratio are rounded up or down.

Not applicable.

(3) Valuation of Specified Assets
Not applicable.

(4) Transactions with Interested Parties
a.Sales and Purchases
Not applicable.
b.LeaseNot applicable.
c.Commission Paid
Not applicable.

(5) Asset Manager’s Transaction Related to Asset Manager’s Other Business

Asset Manager doesn’t conduct any of the type1 and type2 financial instrument exchange business, realestate transaction business and specified joint real estate ventures. There was no applicable transaction
during the period.

48

49

Ⅱ. Balance Sheet(Unit: thousand yen)

5th Period(December 31, 2019)(Unit: thousand yen)

6th Period(June 30, 2020)

5th Period(December 31, 2019)

Assets

6th Period(June 30, 2020)

Liabilities

Current Assets
Cash and bank deposit

Current liabilities
2,474,056

2,627,638

Operating accounts receivable

268,927

477,976

Current portion of long-term loans payable

Prepaid expenses

157,523

109,917

Accounts payable – other67,471

78,655

Consumption taxes receivable

329,815−

Accrued expenses

102,033

155,410

Other current assets

860

1,799

860

922

Total current assets

3,231,182

3,217,332

Consumption tax payable

8,317

203,692

Deposits received

1,562

301

1,725,429

2,003,746

Fixed Assets
Property and equipment
Structures

Accounts payable – operating

Income taxes payable

Total current liabilities

32,98829,9581,512,196

1,534,806

1,040,844

1,041,843

Accumulated depreciation(63,543)(85,025)

Investment corporation bond

1,100,000

1,100,000

Structures, net

977,300

956,818

Long-term loan payable

25,360,810

24,297,106

Total non-current liabilities

26,460,810

25,397,106

28,186,239

27,400,853

Machinery and equipment

42,726,985

42,736,685

Accumulated depreciation(3,002,153)(3,880,573)

Machinery and equipment ,net

39,724,832

38,856,111

Tools, furniture and fixtures

592,249592,249

Accumulated depreciation(43,368)(55,331)

Tools, furniture and fixtures, net

548,881

536,917

4,469,653

4,469,653−

10,56045,720,667

44,830,061

Land
Construction in progress
Total property and equipment
Intangible assets
Leasehold rights
SoftwareTotal intangible assets

753,139

753,139

2,353

1,960

755,492755,099

316,119

284,425

Non-current liabilities

Total liabilities
Net assets
Unitholders' equity
Unit holders’ capital

22,050,175

22,050,175(700,678)(1,010,472)

21,349,496

21,039,702

Unappropriated retained earnings (Accumulated deficit)

534,065

691,823

Total surplus

534,065

691,823

Deduction from unitholders’ capital
Unitholders’ capital (net value)
Surplus

Total unitholders' equity
Total net assets
Total liabilities and net assets

21,883,561※1

21,883,561
50,069,801

21,731,525※1

21,731,525
49,132,379

Investments and other assets
Long-term prepaid expenses
Deferred tax assets

12

15

Guarantee deposits

37,79037,790Total investment and other assets

353,922322,230

46,830,082

45,907,391

Investment corporation bond issuance cost

8,536

7,656

Total deferred assets

8,536

7,656

50,069,801

49,132,379

Total fixed assets
Deferred Assets

Total Assets

50

51

Ⅲ. Statement of Income

Ⅳ. Statements of Changes in Unitholders’ Equity(Unit: thousand yen)

5th period(from July 1, 2019
to December 31, 2019)

5th Fiscal Period (From July 1, 2019 to December 31, 2019)

6th period(from January 1, 2020
to June 30, 2020)

Unitholders’ capital※1

Total operating revenues

2,088,116※1

2,088,116

2,331,291
2,331,291

Balance as of July
1, 2019

Total
unitholders’
Total surplus
equityCapitalsurplus or
loss

Total net
assets

22,050,175(567,281)

21,482,893

710,506

710,506

22,193,399

22,193,399−(133,396)(133,396)−−(133,396)(133,396)

Changes of items
during the period

Operating expenses
Rental expenses of renewable energy power
generation facilities, etc.

Surplus

Deduction
Unitholders’
Unitholders’fromcapitalunitholders’ capital(net)capitalOperating revenues
Rental revenues of renewable energy power
generation facilities, etc.

(Unit: thousand yen)

Unitholders’ equity※1

1,261,805※1

1,362,007

Distribution inexcess of
earnings

Asset management fee

52,21359,407Administrative service fees

18,542

19,402

Dividend of
surplus−−−(710,446)(710,446)(710,446)(710,446)

2,400

Net Income

−

−

−

534,005

534,005

534,005

534,005−(133,396)(133,396)(176,441)(176,441)(309,837)(309,837)※1
22,050,175(700,678)

21,349,496

534,065534,065

21,883,561

21,883,561

Director’s compensation
Taxes and duties

2,400
772

101

Other operating expenses

55,41247,603

Total operating expenses

1,391,146

1,490,922

696,970

840,369

Interest income

1313Interest on refund-

400

Operating income or loss

Total changes of
items during theperiodBalance as ofDecember 31,
2019

Non-operating incomes

Total non-operating income

13

6th Fiscal Period (From January 1, 2020 to June 30, 2020)
Unitholders’ equity
Unitholders’ capital

413

107,285

112,576

1,176

3,894

263

879

Borrowing-related expenses

53,38930,701

Total non-operating expenses

162,115

148,053

Ordinary income

534,868

692,729

Income before income taxes

534,868

692,729

Dividend of
surplus－

Net Income－

Total changes of
items during theperiod－※1
22,050,175

Interest on investment corporation bondAmortization of investment corporation bond issuance cost

Income taxes - current

862

924

Income tax - deferred

0(2)

Total income taxes

862

921

534,005

691,80759

16

534,065

691,823

Net income
Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated deficit)

52

Surplus

Deduction
Unitholders’
Unitholders’fromcapitalunitholders’ capital(net)capitalNon-operating expenses
Interest expenses(Unit: thousand yen)

Balance as ofJanuary 1, 2020

Capitalsurplus or
loss

Total
unitholders’
Total surplus
equityTotal net
assets

22,050,175(700,678)

21,349,496

534,065534,065

21,883,561

21,883,561－(309,794)(309,794)－－(309,794)(309,794)－－(534,048)(534,048)(534,048)(534,048)－－

691,807691,807691,807691,807(309,794)(309,794)

157,758

157,758(152,035)(152,035)(1,010,472)

21,039,702

691,823

691,823

21,731,525

21,731,525

Changes of items
during the period
Distribution inexcess of
earnings

Balance as ofJune 30, 2020

53

Ⅴ. Notes
Summary of Significant Accounting Policies(from January 1, 2020 to June 30, 2020)
1.Method of depreciation
and amortization of noncurrent assets(1) Property and equipment
The straight-line method is adopted. In addition, the useful lives of major
property and equipment are as shown below:
Structures…………………………………… 22 - 25 years
Machinery and equipment………………… 22 - 25 years
Tools, furniture and fixtures………………… 22 - 25 years(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown
below:
Software……………………………………… 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.

2.Method of deferredassets amortization

Investment corporation bond issuance cost
The straight-line method over the period until the redemption date is adopted.

3.Standards for revenue
and expense recognition

Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets tax,
among other taxes, on the infrastructure assets held, of the tax amount assessedand determined, the amount corresponding to the calculation period is accounted
as rental expenses. In addition, reimbursement such as fixed assets tax, which ispaid to the seller and other persons on the acquisition of infrastructure assets andother assets (“the amount equivalent to the fixed assets taxes and other taxes”) is
not recognized as rental expenses but included in the acquisition cost of theconcerned infrastructure assets and other assets.

4.Method of hedge
accounting

5.Other significant mattersserving as the basis for
preparation of financial
statements(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets therequirements for special treatment.
(2) Hedging instruments and hedged items:･Hedging instruments…Interest rate swap transaction･Hedged items….Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the
CSIF’s Articles of Incorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, andthus the evaluation of effectiveness is omitted.
Accounting for Consumption tax
Consumption tax and local consumption tax are excluded from thecorresponding transaction amount.

Notes to Balance Sheet*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations(Unit: thousand yen)

As of December 31, 2019

As of June 30, 2020
50,000Notes to Statement of Income(Unit: thousand yen)

From July 1, 2019
to December 31, 2019

From January 1, 2020
to June 30, 2020

1,567,010

1,646,317

520,930

684,879

176

94

2,088,116

2,331,291

146,524

159,491*1 Breakdown of profits and losses from the rental
business of renewable energy power generation
facilities, etc.
A. Operating revenue from the rental business ofrenewable energy power generation facilities, etc.
Rental revenue of renewable energy power
generation facilities, etc.
(Basic rent)(Variable rent linked to actual output)(Incidental income)
Total operating revenue from the rental business ofrenewable energy power generation facilities, etc.
B. Operating expenses from the rental business ofrenewable energy power generation facilities, etc.
Rental expenses of renewable energy power
generation facilities, etc.
(Management entrustment expenses)(Repair and maintenance costs)(Taxes and duties)(Utilities expenses)

1,768

98

217,112

223,768-−(Insurance expenses)

19,571

22,112(Depreciation expenses)

839,638

911,865(Land rent)

37,19044,670-−1,261,805

1,362,007

826,311969,284(Other rental expenses)
Total operating expenses from the rental business ofrenewable energy power generation facilities, etc.
C. Profits and losses from the rental business of renewableenergy power generation facilities, etc. (A-B)

54

50,00055

Ⅴ. Notes
Notes to Statements of Changes in Unitholders’ Equity*1 Total number of authorized investment units and the total number of investment units issued andoutstanding
From July 1, 2019
To December 31, 2019(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are nomarket prices, values are reasonably calculated. Since certain assumptions are used for the
calculation of fair values, they may change if different assumptions are used.

From January 1, 2020
To June 30, 2020

Total number of authorized investment
units

10,000,000 unit

10,000,000 unit

Total number of investment units issued
and outstanding

231,190 unit

231,190 unit

2.Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of December 31,
2019 and the difference between them. Financial instruments whose fair values are extremely difficult
to estimate are not included in the table.
(Unit: thousand yen)

Notes on Tax Effect Accounting
1.Breakdown of deferred tax assets and deferred tax liabilities by major cause

Accrued business tax not deductible from taxable
incomeBook value(Unit: thousand yen)

Fiscal period ended

Fiscal period ended

December 31, 2019

June 30, 2020

Difference

2,474,056

2,474,056-(2) Operating accounts receivable

268,927

268,927-

Total assets

2,742,983

2,742,983-

1,512,196

1,513,923

1,726
290,7561215(3) Current portion of long-termloans payable

Total deferred tax assets

1215(4) Long-term loans payable

25,360,810

25,651,566

Net amount of deferred tax assets

1215(5) Investment corporation bond

1,100,000

1,100,000-

Total liabilities

27,973,006

28,265,489

292,482(6) Derivative transaction

-

-

-

2.Breakdown of each major item that causes a significant difference between the effective statutory tax rate
and the rate of the burden of corporate tax and other taxes after the application of tax effect accounting(Unit: thousand yen)

Effective statutory tax rate

Fiscal period ended

Fiscal period ended

December 31, 2019

June 30, 2020

31.51%

31.46%(Adjustment)
Dividends paid deductible for tax purpose(31.46)%(31.41)%Others

0.11%

0.09%

Rate of burden of corporate tax and other taxes after theapplication of tax effect accounting

0.16%

0.14%

Notes on Financial Instruments
For the 5th fiscal period (From July 1, 2019 to December 31, 2019)
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial
institutions,issuging investment corporation bond or issuing investment units. The basic policy is tobuild stable and sound financial operations to maintain and increase earnings in the medium to longterm and grow the size and value of assets(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition ofmanaged assets and are exposed to interest rate fluctuation risk and liquidity risk, among otherrisks. However, this risk is deducted through the appropriate balancing of the loan period and theinterest rate type, and diversification of lenders, and the appropriate management of various typesof indexes, especially the general application of the upper limit of the ratio of interest-bearing, which
is 60%.

56(1) Cash and deposits

Fair value(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
Liabilities(3) Current portion of long-term loans payable (4) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every
certain period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, thebook value is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment ofinterest rate swap (refer to (6) 2. below), the fair value is measured by discounting the total sum of the principal andinterest treated together with the said interest rate swap as one at the interest rate that is applied when the similar loan is
obtained and that is reasonably estimated.
(5) Investment corporation bondFair value is based on market value.
(6) Derivative transaction
1. Those to which hedge accounting is not applied
Not applicable.
2. Those to which hedge accounting is applied
Method of hedge
accounting

Type of derivativetransactions and othermatters

Major items
hedgedSpecial treatment
of interest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

Long-termloans payable

Contract amount and otheramounts
Longer than
one year

21,411,430

20,187,606

Fair value

Method ofcalculation ofsaid market
value(Note)-(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of
long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value ispresented together with the fair value of (Note 1) (3) Current portion of long-term loans payable and (4) Longterm loans payable in “Notes on financial instruments 2.Matters relating to fair values of financial instruments,
among other matters” .

57

Ⅴ. Notes(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (December 31, 2019)
Longer than
one year,within two
years

Within one
year(1) Cash and deposits(2) Operating accounts
receivable
Total

Longer than
two years,
within threeyears-

2,474,056

Longer than
three years,
within fouryears-

Longer thanfour years,
within fiveyears-

268,927

-

-

-

-

-

-

-

-

-

-

Longer than
one year,within two
years

Longer than
two years,
within threeyears

Longer than
three years,
within four
years

(Unit: thousand yen)

Longer thanfour years,
within fiveyears

2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of June 30, 2020
and the difference between them. Financial instruments whose fair values are extremely difficult toestimate are not included in the table.
(Unit: thousand yen)-

2,742,983

Within one
year

Total

Longer than
five years-(Note 3) Scheduled redemption amount of loans payables after the closing date (December 31, 2019)(3) Current portion of longterm loans payable(4) Long-term loans
payable(5) Investment corporation
bond(Unit: thousand yen)

Longer than
five years

1,512,196

-

-

-

-

-

-

5,836,435

1,860,238

1,292,889

1,254,936

15,116,310

-

-

-

-

1,100,000-

1,512,196

5,836,435

1,860,238

1,292,889

2,354,936

15,116,310

For the 6th fiscal period (From January 1, 2020 to June 30, 2020)
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial
institutions, issuring investment corporation bond or issuing investment units. The basic policy is tobuild stable and sound financial operations to maintain and increase earnings in the medium to longterm and grow the size and value of assets(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition ofmanaged assets and are exposed to interest rate fluctuation risk and liquidity risk, among otherrisks. However, this risk is deducted through the appropriate balancing of the loan period and theinterest rate type, and diversification of lenders, and the appropriate management of various typesof indexes, especially the general application of the upper limit of the ratio of interest-bearing, which
is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are nomarket prices, values are reasonably calculated. Since certain assumptions are used for the
calculation of fair values, they may change if different assumptions are used.

Book value

Fair value

Difference(1) Cash and deposits

2,627,638

2,627,638−(2) Operating accounts
receivable

477,976

477,976−

Total assets

3,105,615

3,105,615−(3) Current portion of long-termloans payable

1,534,806

1,536,238

1,432(4) Long-term loans payable

24,297,106

24,526,517

229,410(5) Investment corporation bond

1,100,000

1,086,690(13,310)

Total liabilities

26,931,912

27,149,446

217,533(6) Derivative transaction

－

－

－

(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
Liabilities(3) Current portion of long-term loans payable (4) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every
certain period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, thebook value is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment ofinterest rate swap (refer to (6) 2. below), the fair value is measured by discounting the total sum of the principal andinterest treated together with the said interest rate swap as one at the interest rate that is applied when the similar loan is
obtained and that is reasonably estimated.
(5) Investment corporation bondFair value is based on market value.
(6) Derivative transaction
1. Those to which hedge accounting is not applied
Not applicable.
2. Those to which hedge accounting is applied
Method of hedge
accounting

Type of derivativetransactions and othermatters

Major items
hedgedSpecial treatment
of interest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

Long-termloans payable

Contract amount and otheramounts
Longer than
one year

20,811,569

19,568,757

Fair value

Method ofcalculation ofsaid market
value(Note)-(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of
long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value ispresented together with the fair value of (Note 1) (3) Current portion of long-term loans payable and (4) Longterm loans payable in “Notes on financial instruments 2.Matters relating to fair values of financial instruments,
among other matters” .
(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (June 30, 2020)(Unit: thousand yen)
Within one
year(1) Cash and deposits(2) Operating accounts
receivable
Total

58

Longer than
one year,within two
years

Longer than
two years,
within threeyears

Longer than
three years,
within fouryears

Longer thanfour years,
within fiveyears

Longer than
five years

2,627,638

－

－

－

－

－

477,976

－

－

－

－

－

3,105,615

－

－

－

－

－

59

Ⅴ. Notes(Note 3) Scheduled redemption amount of loans payables after the closing date (June 30, 2020)
Longer than
two years,
within threeyears

Longer than
three years,
within fouryears

Longer thanfour years,
within fiveyears

Longer than
five years

1,534,806

－

－

－

－

－

－

5,986,293

1,286,533

1,285,273

1,242,792

14,496,212

－

－

－

－

1,100,000－

1,534,806

5,986,293

1,286,533

1,285,273

2,342,792

14,496,212

Within one
year(3) Current portion of longterm loans payable(4) Long-term loans
payable(5) Investment corporation
bond
Total

(Unit: thousand yen)

Longer than
one year,within two
years

Notes on Investment and Rental Property
CSIF has renewable energy power generation facilities, etc. The book value change during the period andfair value at the end of the period are as shown below.

Notes on Related Party Transaction
For prior period (from July 1, 2019 to December 31, 2019)

Attribute

Name

LOHAS
Interested
CLEAN
Party of
ENERGIES
Asset
WORLD
Manager
K.K.

50F
Shinjuku
MitsuiBldg., Nishishinjuku
2-1-1,
Shinjukuku, Tokyo
JAPANInterested
Canadian
Party of
Solar O&M
Asset
Japan K.K.
Manager

50F
Shinjuku
MitsuiBldg., Nishishinjuku
2-1-1,
Shinjukuku, Tokyo
JAPAN(Unit: thousand yen)

Fiscal period ended

Fiscal period ended

December 31, 2019

June 30, 2020

Book value (Note 2)
Beginning balance

42,676,695

46,473,806

Change during theperiod (Note 3)

3,797,111(901,166)

Ending balance

46,473,806

45,572,640

Fair value at the endof the period (Note 4)

51,498,500

49,588,000(Note 1) The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation facilities, and thus
with respect to the book value and the fair value, the amount of the renewable energy power generation facilities and real estate
are stated together as one.
(Note 2) The book value for is the amount at acquisition cost less the accumulated depreciation.
(Note 3) The change during the period ended December 31, 2019 primarily consisted of the increase due to acquisition of one
photovoltaic power generation facility (4,629,532 thousand yen), and the decrease due to depreciation expenses (839,638
thousand yen). And the change during the period ended June 30, 2020 primarily consisted of the increase due to capital
expenditure of one photovoltaic power generation facility (10,699 thousand yen), and the decrease due to depreciation expenses(911,865 thousand yen).
(Note 4) For S-01 to S-18, the fiscal period end valuation is the median amount that the Investment Corporation calculated in accordancewith Article 41, paragraph 1 of the CSIF's Articles of Incorporation based on the range of valuation provided to us byPricewaterhouseCoopers Sustainability LLC and, for S-19 to S-21, the fiscal period end valuation is based on the medianamount provided to us by Ernst & Young Transaction Advisory Services Co., Ltd. in its project valuation report.

In addition, profits and losses from the renewable energy power generation facilities, etc. for the fiscal
period ended December 31, 2019 (the 5th period) and the fiscal period ended June 30, 2020 (the 6th
period) are as stated in the “Notes to statement of income” above.

Address

Capital(in JPY
thousand)Business

100

Development,
Acquisition,
Construction
andOperation of
Renewable
EnergyPower Plant

Operation0and(Note 3)
Maintenance

Number
of
Units
Hold
(Held)

RelationshipTransaction
Amount(in JPY
thousand)EndingBalance(in JPY
thousand)Concurrent Business
Position of Relation
Executive
ship

Trans
action-PurchaNot
se ofapplica Solar
ble
Power
Plant

Acquisition of
Solar
Power
Plant

4,569,000---

Outsourcing
Notof
applica Operati
ble
on andMainte
nance

Payme
nt of
O&M
Fee

146,305

Accounts
Payable32,988

Account(Note 1)
(Note 2)

(Note 1)

(Note 1) The amounts exclude consumption taxes.
(Note 2) The condition of transactions are referring to market prices etc.
(Note 3) Capital amount was increased to 100,000 thousand yen on January 21, 2020.

For current period (from January 1, 2020 to June 30, 2020)

Attribute

Name

Interested
Canadian
Party of
Solar O&M
Asset
Japan K.K.
Manager

Address

50F
Shinjuku
MitsuiBldg., Nishishinjuku
2-1-1,
Shinjukuku, Tokyo
JAPAN

Capital(in JPY
thousand)Business

Operation
100,000 and
Maintenance

Number
of
Units
Hold
(Held)-

Relationship
Concurrent Business
Position of Relation
Executive
ship
Outsourcing
Notof
applica Operati
ble
on andMaintenance

Transaction

Payme
nt of
O&M
Fee

Transaction
Amount(in JPY
thousand)Account(Note 1)
(Note 2)

159,272

EndingBalance(in JPY
thousand)(Note 1)

Accounts
Payable29,958(Note 1) The amounts exclude consumption taxes.
(Note 2) The condition of transactions are referring to market prices etc.

Notes on Restriction for Asset Management
Not applicable.

60

61

Ⅴ. Notes

Ⅵ. Statement of Cash Distribution

Notes on Per Unit Information
Current fiscal period

Prior fiscal period

From July 1, 2019
December 31, 2019
Net assets per unit
Net income per unit

From January 1,2020
to June 30, 2020
Net assets per unit
Net income per unit

94,656 yen
2,309 yen

Net income per unit is calculated by dividing net
income by the average number of investment units
during the period.
With respect to diluted profit per unit for the period,
there are no dilutive investment units, and thus thestatement is omitted.

93,998 yen
2,992 yen

Net income per unit is calculated by dividing net
income by the average number of investment units
during the period.
With respect to diluted profit per unit for the period,
there are no dilutive investment units, and thus thestatement is omitted.

(Note) The basis of calculation of net income (net loss) per unit is as follows.

Current fiscal period

Prior fiscal period

From July 1, 2019
December 31, 2019

From January 1, 2020
to June 30, 2020

Net income (Net loss) (Thousand yen)Amount not attributable to common unit holders(Thousand yen)

691,807-

Net income (Net loss) attributable to Common unit
holders (Thousand yen)

534,005

691,807

Average number of investment units during the period(Units)

231,190

231,190

Notes on Subsequent Event after the Balance Sheet Date
For the 5th fiscal period (From July 1, 2019 to December 31, 2019)
Not applicable.
For the 6th fiscal period (From January 1, 2020 to June 30, 2020)
Not applicable.

62534,005

I Unappropriated retained earnings(accumulated deficit)
II Distributions in excess of retained earnings
Deduction from unitholders’ capital
III Cash distributions(Cash distributions per unit)
Profit distributions(Profit distributions per unit)
Distributions in excess of retained earnings(Distributions in excess of retained earnings)
IV Retained earnings (deficit) carried forward
Calculation method for cash
distributions

Fiscal Period under Review

Fiscal Period under Review(From July 1, 2019
to December 31, 2019)(From January 1, 2020
to June 30, 2020)

534,065,162Yen

691,823,858Yen

309,794,600Yen
843,843,500Yen(3,650)Yen
534,048,900Yen(2,310)Yen
309,794,600Yen(1,340)Yen
16,262Yen
In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’)s Articles of Incorporation, theamount of cash distributions
shall be the amount of profit inexcess of an amount equivalent
to 90% of distributable profits, as
stipulated in Article 67-15 of the
Act on Special Measures
Concerning Taxation. Based on
this policy, CSIF decided tomake distributions of¥534,048,900 which is the entire
amount equivalent to theunappropriated retained
earnings for the fiscal period
under review of ¥534,065,162
excluding fractions of the
distribution per unit that are lessthan ¥1.
CSIF distributes cash inexcess of retained earnings
every fiscal period based on the
cash distribution policy
prescribed in Article 47,
Paragraph 2 of CSIF’s Articles ofIncorporation. Based on thispolicy, CSIF decided to makecash distributions in excess ofearnings (return of capital
categorized as a distribution of
the reduction in capital for
Japanese tax purposes) in theamount of ¥309,794,600 whichis equivalent to 36.9% of theamount of depreciation
expenses recorded for the fiscal
period under review of¥840,031,795.
Accordingly, the distribution
per unit is ¥3,650.

163,682,520Yen
855,403,000Yen(3,700)Yen
691,720,480Yen(2,992)Yen
163,682,520Yen(708)Yen
103,378Yen
In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’)s Articles of Incorporation, theamount of cash distributions
shall be the amount of profit inexcess of an amount equivalent
to 90% of distributable profits, as
stipulated in Article 67-15 of the
Act on Special Measures
Concerning Taxation. Based on
this policy, CSIF decided tomake distributions of¥691,720,480 which is the entire
amount equivalent to theunappropriated retained
earnings for the fiscal period
under review of ¥691,823,858
excluding fractions of the
distribution per unit that are lessthan ¥1.
CSIF distributes cash inexcess of retained earnings
every fiscal period based on the
cash distribution policy
prescribed in Article 47,
Paragraph 2 of CSIF’s Articles ofIncorporation. Based on thispolicy, CSIF decided to makecash distributions in excess ofearnings (return of capital
categorized as a distribution of
the reduction in capital for
Japanese tax purposes) in theamount of ¥163,682,520 which isequivalent to 17.9% of theamount of depreciation
expenses recorded for the fiscal
period under review of¥912,259,006.
Accordingly, the distribution
per unit is ¥3,700.

(Note) Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy prescribed in CSIF’s
Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power generation facilities.
The amount available for distribution shall be calculated by multiplying NCF by the payout ratio.
Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order to realize such policy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of the Forecast Power
Generation (P50) provided in the independent technical report which is used as a basis for calculating rents for renewable energy
power generation facilities and if actual NCF calculated based on actual power generation during the applicable fiscal period
exceeds forecast NCF, CSIF’s policy is to set “forecast NCF multiplied by the payout ratio” as the upper limit of the amount of cash
distributions for the applicable fiscal period.
On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by the payout ratio” as theamount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the previous fiscal period of ¥843,843,500 which is equivalent to82.0% of forecast NCF amount for the fiscal period under review of ¥1,029,345,000. Of this, ¥309,794,600 which is the amountless of distributions of profit of ¥534,048,900 is distributions in excess of retained earnings.
And, CSIF decided to make distributions for the current fiscal period of ¥855,403,000 which is within the limitation of 95% of
forecast NCF amount for the current fiscal period under review of ¥902,632,000 and equivalent to 94.7% of that. Of this,¥163,682,520 which is the amount less of distributions of profit of ¥691,720,480 is distributions in excess of retained earnings.

63

Ⅶ. Statement of Cash Flow(unit: thousand yen)

5th period

6th period(From July 1, 2019
to December 31, 2019)(From January 1, 2020
to June 30, 2020)

Income (Loss) before income taxes

534,868

692,729

Depreciation cost

840,031912,259

Scope of funds instatement of cash flows

Cash flows from operating activities

Investment corporation bond issuance expenses

263

879

Interest income

(13)

(13)

Interest expenses

108,461

116,471

Decrease (Increase) in operating accounts receivable

157,829(209,049)

Decrease (Increase) in consumption taxes receivable(329,815)

329,815

Decrease (Increase) in consumption taxes payable(41,587)

195,374

Decrease (Increase) in prepaid expenses(85,718)

47,606

Decrease (Increase) in long-term prepaid expenses(8,695)31,694

Increase (Decrease) in operating accounts payable

6,644(3,030)

Increase (Decrease) in accounts payable - other(15,532)

11,184

Increase (Decrease) in accrued expenses(11,331)54,026

Other, net(833)(2,200)Sub-total

1,154,572

2,177,748

13

13(107,769)(117,120)

(870)

(862)

1,045,945

2,059,778

Purchases of property and equipment(4,396,022)(21,259)

Purchases of intangible fixed assets(240,727)−

Payment of guarantee deposits(16,769)−(4,653,519)(21,259)

Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

Summary of Significant Accounting Policies
From July 1, 2019
To December 31, 2019

From January 1, 2020
To June 30, 2020

Funds (cash and cash equivalents) instatement of cash flows consist of cashon hand, demand deposits and shortterm investments with a maturity of
three months or less at the date ofacquisition that can readily beconverted into cash and that are
subject to insignificant risks of changes
in value.

Funds (cash and cash equivalents) instatement of cash flows consist of cashon hand, demand deposits and shortterm investments with a maturity of
three months or less at the date ofacquisition that can readily beconverted into cash and that are
subject to insignificant risks of changes
in value.

Notes to Statement of Cash Flows*1 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance
sheet
From July 1, 2019
To December 31, 2019
*1 Relationship between the ending balance of cash
and cash equivalents and the amounts on thebalance sheet(as of December 31, 2019)

From January 1, 2020
To June 30, 2020
*1 Relationship between the ending balance of cash
and cash equivalents and the amounts on thebalance sheet(as of June 30, 2020)(unit: thousand yen)

Cash and deposits
Term deposits over threemonthsCash and cash
equivalents

2,474,056(7,800)2,466,256(unit: thousand yen)

Cash and deposits
Term deposits over threemonthsCash and cash
equivalents

2,627,638(7,800)2,619,838

Cash flows from investing activities

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable

4,800,000−

Repayment of long-term loans payable(1,440,151)(1,041,093)

Proceeds from issuance of investment corporationbond

1,100,000−

Payments for investment corporation bond issuance
expenses(8,800)−

Dividends paid

(710,446)(534,048)

Surplus earning distribution paid

(133,396)(309,794)

Net cash provided by (used in) financing activities

3,607,205(1,884,936)

Net increase (decrease) in cash and cash equivalents(368)

153,5812,466,624

2,466,256

Cash and cash equivalents at the beginning of the fiscal
periodCash and cash equivalents at the end of the fiscal period

64※12,466,256※1

2,619,838

65